Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless
otherwise noted)
TORONTO, April 27,
2023 /CNW/ - Agnico Eagle Mines Limited (NYSE:
AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today
reported financial and operating results for the first quarter of
2023.
"The year is off to a good start with strong operational results
and the best quarterly safety performance in the Company's over
65-year history, which positions us well to meet our full year
guidance projections. Costs were better than expected, primarily
due to the strong operating results, favourable currency movements
and a slight easing of inflationary pressures," said Ammar Al-Joundi, Agnico Eagle's President and
Chief Executive Officer. "With the completion of the acquisition of
Yamana's Canadian assets on March
31st, our focus in 2023 continues to be on the
optimization of our strategic positions in the Abitibi gold belt,
with an aim of increasing annual gold production from this region
by approximately 500,000 ounces by the end of the decade. Efforts
are ongoing to evaluate several opportunities to leverage existing
infrastructure which has the potential to significantly increase
future gold production at lower capital intensity and with a
reduced environmental footprint. If realized, these opportunities
have the potential to deliver increased returns to our shareholders
with reduced execution and operating risk," added Mr.
Al-Joundi.
First quarter 2023 highlights – Solid operational
performance and important strategic consolidations
- Strong quarterly production and costs with record safety
performance – Payable gold production1 in the first
quarter of 2023 was 812,813 ounces at production costs per ounce of
$804, total cash costs per
ounce2 of $832 and all-in
sustaining costs ("AISC") per ounce3 of $1,125. These results include only the Company's
50% of the production from the Canadian Malartic mine up to
March 30, 2023, and 100%
thereafter
- Solid quarterly financial results – The Company reported
quarterly net income of $3.87 per
share in the first quarter of 2023, with adjusted net
income4 of $0.58 per
share. Operating cash flow was $1.30
per share. The quarterly net income of $3.87 per share includes a remeasurement gain of
approximately $1.5 billion arising
from the acquisition of 50% of the Canadian Malartic complex not
previously owned by the Company
- Gold production, cost and capital expenditure guidance
reiterated for 2023 – Expected payable gold production in 2023
remains unchanged at approximately 3.24 to 3.44 million ounces with
total cash costs per ounce expected to be between $840 and $890 and
AISC per ounce expected to be between $1,140 and $1,190.
Total capital expenditures (excluding capitalized exploration) for
2023 are still estimated to be approximately $1.42 billion. The Company's 2023 production,
costs and capital expenditure guidance assumes 50% ownership of
Canadian Malartic for the first three months of 2023 and 100%
ownership for the last nine months of the year
- Update on key value drivers and pipeline projects
-
- Odyssey project – Good progress was made on underground
development and surface construction activities in the first
quarter of 2023. Underground development via ramp access has now
passed the bottom of the Odyssey South deposit and has reached the
level of the first shaft access point. Shaft sinking activities
have also commenced. The first production blast occurred at the
Odyssey South deposit in late March
2023. Drilling activities were focused on infilling the
internal zones at the Odyssey South deposit and mineral resource
expansion of the East Gouldie deposit to the east and west
- Detour Lake – In the first quarter of 2023, the mill set
a record for first quarter throughput and activities continued to
focus on mill process optimization and improving availability with
the goal of achieving and potentially exceeding throughput of 28.0
million tonnes per annum ("Mtpa"). Step out drilling continued to
the west of the resource pit shells and the Company is integrating
additional drill data into a revised mineral resource model that
will be used to evaluate potential underground mining scenarios
- Optimization of assets and capital infrastructure in the
Abitibi region – With the Company now owning of 100% of
Canadian Malartic complex, the Company expects to have up to 40,000
tonnes per day ("tpd") of excess mill capacity at Canadian
Malartic Complex starting in 2028.
By maximizing the mill throughput in the region, the Company
believes there is potential to increase future gold production at
lower capital costs and with a reduced environmental footprint.
Internal evaluations are underway to assess potential production
opportunities at the Macassa near surface deposits and the
Amalgamated Kirkland ("AK") deposit, Upper Beaver and the Wasamac
project. These evaluations are expected to be completed by year-end
2023
- Continued exploration success at Meliadine, Kittila,
LaRonde Zone 5 ("LZ5") and Goldex
expected to drive future mineral reserve and mineral resource
additions
-
- Meliadine – Drilling has targeted the vertical
extensions of the mineralized zones in the central part of the
Tiriganiaq and Wesmeg deposits. At Tiriganiaq, a recent intercept
yielded 17.2 grams per tonne ("g/t") gold over 4.9 metres at 770
metres depth. At Wesmeg, drilling in the eastern part of the
deposit continues to return wide, high-grade intersections, with
recent results including 8.9 g/t gold over 7.0 metres at 532 metres
depth
- Kittila – Drilling has extended the Rimpi Main Zone to
the north, outside of the current mineral resources, with
highlights of up to 5.0 g/t gold over 9.2 metres at 1,141 metres
depth. In addition, drilling has extended the Rimpi Zone
mineralization down-plunge from the Roura area within the Parallel
/ Sisar zones, with intercepts of up to 5.0 g/t gold over 4.9
metres at 1,199 metres depth
- LZ5 – Drilling continues to expand the mineral resource
envelope which now extends to a depth of 950 metres, with
highlights including 3.0 g/t gold over 30.0 metres at 671 metres
depth and 3.7 g/t gold over 10.1 metres at 840 metres depth.
Inferred mineral resources are expected to be added at depths
between 770 and 950 metres by year-end 2023
- Goldex – Infill drilling in the South Zone Sector 3 has
returned high-grade results, including 9.8 g/t gold over 15.5
metres at 1,246 metres depth and 6.0 g/t gold over 12.0 metres at
1,274 metres depth. Initial drilling in the W Zone (approximately
200 metres west of the main Goldex deposit) has returned 1.8 g/t
gold over 35.0 metres at 480 metres depth in an area with
historical mineralized inventory
- Acquisition of Yamana's Canadian assets and 50/50 San
Nicolás copper-zinc joint venture with Teck completed
-
- Yamana Transaction – The previously announced
transaction to acquire the Canadian assets of Yamana Gold Inc.
("Yamana") closed on March 31, 2023
(the "Yamana Transaction"), and the Company now owns 100% of the
Canadian Malartic Complex, the
Wasamac project located in the Abitibi region of Quebec and several other exploration
properties located in Ontario and
Manitoba. The closing of the
Yamana Transaction further solidifies the Company's presence in the
Abitibi gold belt, a region of low political risk and high
geological potential, where the Company has a strong competitive
advantage from having operated in the region for over 50 years
- San Nicolás – The previously announced 50/50 joint
venture agreement between Teck Resources Limited ("Teck") and
Agnico Eagle in respect of the San Nicolás copper-zinc development
project located in Zacatecas,
Mexico was entered into on April 6,
2023. Minera San Nicolás S.A.P.I de C.V., the joint venture
company that holds the project, is now working to advance
permitting and development of the project and is planning to submit
an Environmental Impact Assessment and permit application for San
Nicolás in 2023 and is targeting completion of a feasibility study
in 2024
- 2022 sustainability report published, illustrating continued
commitment to strong ESG performance and implementation of a
climate strategy action plan – In 2022, Agnico Eagle maintained
or improved performance across many key ESG indicators, including
safety performance, efficient management of water resources and
increased Indigenous employment. In addition, efforts were
accelerated in 2022 to maintain a climate resilient business by
setting an interim reduction target of 30% of absolute Scope 1 and
2 emissions by 2030, and publication of the Company's first Climate
Action Report
- A quarterly dividend of $0.40
per share has been declared
__________________________
|
1 Payable
production of a mineral means the quantity of a mineral produced
during a period contained in products that have been or will be
sold by the Company whether such products are shipped during the
period or held as inventory at the end of the period.
|
2 Total cash
costs per ounce is a non-GAAP ratio that is not a standardized
financial measure under IFRS and, unless otherwise specified, is
reported on a by-product basis in this news release. For the
detailed calculation of production costs per ounce, the
reconciliation of total cash costs to production costs and
information about total cash costs per once on a co-product basis,
see "Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance".
|
3 AISC per
ounce is a non-GAAP ratio that is not a standardized financial
measure under the IFRS and, unless otherwise specified, is reported
on a by-product basis in this news release. For a reconciliation to
production costs and for all-in sustaining costs on a co-product
basis, see "Reconciliation of Non-GAAP Financial Performance
Measures" below. See also "Note Regarding Certain Measures of
Performance".
|
4 Adjusted
net income and adjusted net income per share are non-GAAP measures
that are not standardized financial measures under IFRS. For a
reconciliation to net income and net income per share see
"Reconciliation of Non-GAAP Financial Performance Measures" below.
See also "Note Regarding Certain Measures of
Performance".
|
First Quarter 2023 Results Conference Call and
Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on
Friday, April 28, 2023 at
8:30 AM (E.D.T.) to discuss
the Company's first quarter 2023 financial and operating
results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
1-416-764-8659 or toll-free 1-888-664-6392. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Via URL Entry:
To join the conference call without operator assistance, you may
register and enter your phone number at https://bit.ly/3VJ2EKh to
receive an instant automated call back.
Replay Archive:
Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access
code 175235#. The conference call replay will expire on
May 28, 2023.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
Annual Meeting
The Company will host its Annual and Special Meeting of
Shareholders (the "AGM") on Friday, April
28, 2023 at 11:00 am
(E.D.T). During the AGM, management will provide an overview
of the Company's activities.
Hybrid Format
The AGM will be held in person at the Arcadian Court, 401 Bay
Street, Simpson Tower, 8th Floor, Toronto, Ontario, M5H 2Y4 and online at:
https://meetnow.global/M5UPTSH.
The Company is conducting a hybrid meeting that will allow
registered shareholders and duly appointed proxyholders to
participate both online and in person. The Company is providing the
virtual format in order to provide shareholders with an equal
opportunity to attend and participate at the AGM.
For details explaining how to attend, communicate and vote
virtually at the AGM please see the Company's Management
Information Circular dated March 21,
2023 filed under the Company's profile on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. Shareholders who have
questions about voting their shares or attending the AGM may
contact Investor Relations by telephone at 416.947.1212, by
toll-free telephone at 1.888.822.6714 or by email at
info@agnicoeagle.com or the Company's strategic shareholder advisor
and proxy solicitation agent, Laurel Hill Advisory Group, at
1.877.452.7184 (toll free in North
America), at 1.416.304.0211 (for collect calls outside of
North America) or by e-mail at
assistance@laurelhill.com.
First Quarter 2023 Financial and Production
Results
In the first quarter of 2023, net income was $1,816.9 million ($3.87 per share). This result includes the
following items (net of tax): a remeasurement gain arising from the
acquisition of the remaining 50% of the Canadian Malartic complex
of $1,543.4 million ($3.29 per share), transaction costs relating to
the acquisition of the Canadian assets of Yamana of $12.5 million ($0.03 per share), foreign currency translation
gains on deferred tax liabilities of $10.6 million ($0.02 per share), and mark-to-market gains on the
Company's investment portfolio of $4.1
million ($0.01 per share).
Excluding the above items results in adjusted net income of
$271.3 million or $0.58 per share for the first quarter of 2023.
For the first quarter of 2022, the Company reported net income of
$119.1 million ($0.31 per share).
Included in the first quarter of 2023 net income, and not
adjusted above, is a non-cash stock option expense of $4.7 million ($0.01
per share).
The increase in net income in the first quarter of 2023 compared
to the prior-year period is primarily due to the remeasurement
gain. This gain is a result of the application of purchase
accounting relating to a business combination attained in stages,
which requires the remeasurement on the subsequent acquisition of
the Company's previously held 50% interest in the Canadian Malartic
complex to fair value.
The fair value of the Company's previously held 50% interest and
the resulting gain on remeasurement, along with the fair values
allocated to assets acquired and liabilities assumed are
preliminary, and are subject to adjustment based on further
analysis and evaluation over the course of the measurement period
which may not exceed twelve months from the acquisition date.
Additionally, higher mine operating margins5 from
higher sales volumes (see discussion below) and lower other
expenses from lower transaction costs were partially offset by
higher amortization and higher income and mining taxes.
In the first quarter of 2023, cash provided by operating
activities was $649.6 million
($608.8 million before changes in
non-cash components of working capital), compared to the first
quarter of 2022 when cash provided by operating activities was
$507.4 million ($366.0 million before changes in non-cash
components of working capital).
Cash provided by operating activities (before changes in
non-cash components of working capital) increased in the first
quarter of 2023 when compared to the prior-year period primarily
due to higher sales volumes following the merger (the "Merger")
between Agnico Eagle and Kirkland Lake Gold Ltd. ("Kirkland Lake
Gold") as opposed to the 58 days of production that followed the
Merger in 2022.
In the first quarter of 2023, the Company's payable gold
production was 812,813 ounces. This compares to quarterly payable
gold production of 660,604 ounces in the prior-year period.
Including the entire quarter's production from the pre-Merger
Kirkland Lake Gold mines, pro forma total gold production in
the first quarter of 2022 was 806,329 ounces.
Payable gold production increased in the first quarter of 2023
when compared to the prior-year period, primarily due to the
inclusion of additional days of production in the 2023 period as
described above at the Detour Lake, Fosterville and Macassa mines.
In the first quarter of 2023, production costs per ounce were
$804, compared to $1,002 in the prior-year period. In the first
quarter of 2023, total cash costs per ounce were $832, compared to $811 in the prior-year period.
Production costs per ounce decreased in the first quarter of
2023 when compared to the prior-year period primarily as a result
of the revaluation of gold inventory held by Kirkland Lake Gold on February 8, 2022. A detailed description of
the minesite costs per tonne at each mine is set out below.
Total cash costs per ounce increased in the first quarter of 2023
when compared to the prior year period primarily due to higher
inventory adjustments and lower by-product revenues from the
LaRonde mine and Pinos Altos
mine.
In the first quarter of 2023, AISC per ounce were $1,125, compared to $1,079 in the prior-year period. AISC per
ounce increased in the first quarter of 2023 when compared to the
prior-year period primarily due to higher total cash costs per
ounce and higher sustaining capital expenditures, partially offset
by lower general and administrative expenses.
_________________________
5 Operating
margin is a non-GAAP measure that is not a standardized measure
under IFRS. For a reconciliation to net income see
"Reconciliation of Non-GAAP Financial Performance Measures" below.
See also "Note Regarding Certain Measures of
Performance".
Financial Flexibility Remains Strong After Acquisition of
Yamana's Canadian Assets
Cash and cash equivalents increased to $744.6 million at March
31, 2023, from the December 31,
2022 balance of $658.6
million, primarily due to improved operating margins. On
March 30, 2023 the Company drew down
$1.0 billion from its unsecured
revolving bank credit facility and funded the approximately
$1.0 billion of cash consideration
payable in connection with the Yamana Transaction.
In addition to the quarterly dividend, the Company contributed
to shareholder returns through its normal course issuer bid
("NCIB"). In the first quarter of 2023, under the NCIB, the Company
repurchased 100,000 common shares for $4.8
million. From the commencement of the NCIB on
May 4, 2022 until March 31, 2023, under the NCIB, the Company
repurchased 1,669,620 common shares for an aggregate of
$74.6 million. The NCIB permits the
Company to purchase up to $500.0
million of its common shares (up to a maximum of 5% of its
issued and outstanding common shares). Purchases under the
NCIB may continue for up to one year from the commencement day of
May 4, 2022.
The Company intends to seek approval from the TSX to renew the
NCIB, pursuant to which the Company would be permitted to purchase
up to the lessor of (i) 5% of its issued and outstanding common
shares and (ii) the number of common shares that may be purchased
by the Company for an aggregate purchase price, excluding
commissions of $500.0 million.
Purchases under the NCIB may continue for up to one year from the
expected commencement date of May 3,
2023. If approved, purchases under the NCIB will be made
through the facilities of the TSX, the NYSE or other designated
exchanges and alternative trading systems in Canada and the
United States in accordance with applicable regulatory
requirements. All common shares purchased under the NCIB will
be cancelled.
Subsequent to quarter end, on April 7,
2023, Moody's upgraded its credit rating outlook for the
Company to "positive" from "stable", while affirming the credit
rating at Baa2, reflecting the Company's strong business and credit
profile, while maintaining low leverage and conservative financial
policies. On April 20, 2023, the
Company entered into a credit agreement with a group of financial
institutions that provides a $600
million unsecured term credit facility (the "Term Credit
Facility"). The Company expects to draw down in full on the Term
Credit Facility on April 28, 2023 and
will use the proceeds to partially repay the amounts drawn on the
unsecured revolving bank credit facility. The Term Credit Facility
matures and all indebtedness thereunder is due and payable on
April 21, 2025. The Term Credit
Facility is available as a single advance in US dollars through
SOFR and base rate advances, priced at the applicable rate plus a
margin that ranges from 0.00% to 2.00% depending on the Company's
credit rating. The Term Credit Facility may be prepaid without
penalty. At March 31, 2023 the
Company's net debt6 totaled $1,597.9 million.
Approximately 57% of the Company's remaining 2023 estimated
Canadian dollar exposure is hedged at an average floor price above
1.32 C$/US$. Approximately 29%
of the Company's remaining 2023 estimated Euro exposure is hedged
at an average floor price of approximately 1.03 US$/EUR. Approximately 59% of the
Company's remaining 2023 estimated Australian dollar exposure is
hedged at an average floor price above 1.45
A$/US$. Approximately 33% of the Company's remaining
2023 estimated Mexican peso exposure is hedged at an average floor
price above 20.70 MXP/US$. The
Company's full year 2023 cost guidance is based on assumed exchange
rates of 1.32 C$/US$, 1.10 US$/EUR, 1.40
A$/US$ and 20.00 MXP/US$.
Including the remaining diesel purchased for the Company's
Nunavut operations on the 2022
sealift (consumed to mid-year 2023), approximately 50% of the
Company's diesel exposure for 2023 is hedged at an average price of
$0.80 per litre, compared to the 2023
cost guidance assumption of $0.93 per
litre. These hedges have partially mitigated the effect of
inflationary pressures to date and are expected to provide some
protection against inflation going forward.
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs. Current hedging positions are not factored into 2023 and
future guidance.
__________________________
6 Net debt
is a non-GAAP measure that is not a standardized measure under
IFRS. For a reconciliation to long-term debt, see
"Reconciliation of non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance".
Dividend Record and Payment Dates for the Second Quarter of
2023
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.40 per common share,
payable on June 15, 2023 to
shareholders of record as of June 1,
2023. Agnico Eagle has declared a cash dividend every year
since 1983.
Expected Dividend Record and Payment Dates for the 2023
Fiscal Year
Record
Date
|
Payment
Date
|
March 1,
2023*
|
March 15,
2023*
|
June 1,
2023**
|
June 15,
2023**
|
September 1,
2023
|
September 15,
2023
|
December 1,
2023
|
December 15,
2023
|
*Paid
**Declared
Dividend Reinvestment Plan
See the following link for information on the Company's dividend
reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
In the first quarter of 2023, the Company and Computershare
Trust Company of Canada
("Computershare") entered into a Currency Exchange Services
Agreement pursuant to which Computershare will now offer
shareholders of the Company outside of Canada and the
United States the opportunity to receive dividends in their
preferred local currency. Computershare mailed enrollment
forms and an information package to shareholders on April 17, 2023, and the service will be available
beginning with the dividend to be paid in the second quarter 2023
for those shareholders that have registered. Any fees payable
in connection with the currency exchange service will be paid by
individual shareholders who elect to enroll in the program. For
more information, please contact Computershare by phone at
1.800.564.6253 or online at www.investorcentre.com or
www.computershare.com/investor.
Capital Expenditures
In the first quarter of 2023, capital expenditures were
$310.5 million and capitalized
exploration expenditures were $31.3
million, for a total of $341.7
million. Total expected capital expenditures (including
capitalized exploration) remain in line with guidance for the full
year 2023.
The following table sets out capital expenditures (including
sustaining capital expenditures7 and development capital
expenditures7) and capitalized exploration in the first
quarter of 2023.
__________________________
|
7 Sustaining
capital expenditures and development capital expenditures are
non-GAAP measures that are not standardized financial measures
under IFRS. See "Note Regarding Certain Measures of Performance"
and "Reconciliation of Non-GAAP Performance Measures –
Reconciliation of Sustaining Capital Expenditures to Consolidated
Statements of Cash Flow.
|
Capital
Expenditures
|
(In thousands of U.S.
dollars)
|
|
|
|
|
Capital
Expenditures*
|
|
Capitalized
Exploration
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
March 31,
2023
|
|
March 31,
2023
|
Sustaining Capital
Expenditures
|
|
|
|
LaRonde
complex
|
15,739
|
|
255
|
Canadian Malartic
complex
|
16,584
|
|
—
|
Goldex mine
|
4,738
|
|
84
|
Detour Lake
mine
|
53,284
|
|
—
|
Macassa
mine
|
6,390
|
|
258
|
Meliadine
mine
|
13,077
|
|
2,009
|
Meadowbank
complex
|
35,631
|
|
—
|
Hope Bay
project
|
2
|
|
—
|
Fosterville
mine
|
7,669
|
|
300
|
Kittila
mine
|
8,910
|
|
1,425
|
Pinos Altos
mine
|
7,997
|
|
253
|
La India
mine
|
27
|
|
—
|
Total Sustaining
Capital
|
$
170,048
|
|
$
4,584
|
|
|
|
|
Development Capital
Expenditures
|
|
|
|
LaRonde
complex
|
15,294
|
|
—
|
Canadian Malartic
complex
|
29,818
|
|
1,203
|
Goldex mine
|
8,011
|
|
1,278
|
Akasaba West
project
|
10,369
|
|
—
|
Detour Lake
mine
|
22,608
|
|
8,467
|
Macassa
mine
|
21,050
|
|
7,363
|
Meliadine
mine
|
16,073
|
|
1,807
|
Amaruq underground
project
|
331
|
|
—
|
Hope Bay
project
|
475
|
|
—
|
Fosterville
mine
|
3,141
|
|
5,963
|
Kittila
mine
|
10,696
|
|
—
|
Pinos Altos
mine
|
2,199
|
|
594
|
Other
|
363
|
|
—
|
Total Development
Capital
|
$
140,428
|
|
$
26,675
|
Total Capital
Expenditures
|
$
310,476
|
|
$
31,259
|
* Excludes
capitalized exploration
|
2022 Sustainability Report Illustrates Continued Commitment
to Strong ESG Performance and Implementation of Climate Strategy
Action Plan
On April 27, 2023, Agnico Eagle
released its 2022 Sustainability Report (the "Report"). The Report
provides an update on the Company's oversight, strategy, practices
and risk management approach to key areas of health and safety, ESG
and the historic sustainability performance of mining
operations.
This marks the 14th year that the Company has
produced a detailed account of its ESG performance. The Report has
been prepared in accordance with the Global Reporting Initiative
(GRI) Standards, is aligned with the Task Force on Climate Related
Financial Disclosures (TCFD) and includes additional mining
industry specific indicators from the Sustainability Accounting
Standards Board (SASB) Metals and Mining disclosures and
metrics.
The theme of the Report, "we make mining work", reflects the
Company's long-standing approach to responsibly develop mineral
resources for the benefit of all.
Everywhere we operate, we make mining work by:
Having strong ESG performance – In 2022, the Company
maintained or improved performance across many key ESG indicators,
including achieving the Company's best safety frequency performance
in its over 65-year history, zero significant environmental
incidents, the efficient management of water (recycling 78% of
water for operational use and reducing freshwater usage per ounce
of gold produced), and increased Indigenous employment. The Company
continued to invest and contribute in the communities in which it
operates with a total of $16 million
in community investments and $1.4
billion in local procurement in 2022
Addressing climate-change and working towards net-zero by
2050 – In 2022, Agnico Eagle increased its efforts to maintain
a climate resilient business by setting an interim reduction target
of 30% of absolute Scope 1 and 2 emissions by 2030, completing site
specific climate-related physical risk assessments, conducting
preliminary scenario planning and publishing the Company's first
Climate Action Report. The Company's greenhouse gas ("GHG")
profile, with an intensity of 0.4 tonnes of CO2 equivalent per
ounce of gold produced, continues to position Agnico Eagle as a low
GHG intensity gold producer. The Report also provides an estimate
of Scope 3 emissions
Being a great place to work – The Company is committed to
providing a safe, diverse, inclusive and collaborative workplace
for its people. In 2022, the Company launched Sanajiksanut in
Nunavut, a tailored hiring program
designed to empower and increase the Inuit workforce; in support of
gender diversity, six women were welcomed into a scholarship and
development program in memory of former Agnico Eagle director, Dr.
Leanne Baker; and Agnico Eagle
Mexico was named as one of the Best Places to Work in Mexico 2022 for its commitment to creating a
safe, healthy and engaging workplace
Community investments – Being a trusted and valued
member of the communities associated with our operations remains a
fundamental principle and priority for Agnico Eagle. In 2022,
employees from the Company's Fosterville mine were extensively involved in
helping communities in Central
Victoria recover from devastating floods that hit the region
late in the year and the Company pledged AUD750,000 to help the
community recover from the devastation. The Company also
collaborated with the Government of Sonora in Mexico on the construction of a water supply
well in Tarachi, benefiting 358 people. The Company continues to
provide support to vulnerable groups, including sponsoring a
foodshare program in Bendigo, Australia and holding food drive
collections. In 2022, the Company contributed $5.6 million in health-related community
investments across the organization
Mining responsibly – The Company is committed to being a
responsible miner and contributing to the sustainable development
of the regions in which it operates. The Company is a longtime
supporter of recognized international sustainability frameworks,
including Towards Sustainable Mining (TSM), Responsible Gold Mining
Principles (RGMP), the Voluntary Principles on Security and Human
Rights (VPSHRs), the Conflict-Free Gold Standard and the Task Force
on Climate-related Financial Disclosures
The Company's 2022 Sustainability Report can be
accessed here.
Update on Key Value Drivers and Pipeline Projects
Highlights on the key value drivers (Odyssey project, Detour
Lake mine and optimization of assets and capital infrastructure,
including excess mill capacity in the Abitibi region of
Quebec) and the Hope Bay project
are set out below. Details on certain mine expansion projects
(Macassa shaft and new ventilation system, Kittila shaft, Meliadine
Phase 2 and Amaruq underground) are set out in the applicable
operational sections of this news release.
Odyssey Project
Good progress was made on underground development and surface
construction activities in the first quarter of 2023. Underground
development via ramp access reached the bottom of the Odyssey South
deposit and the shaft access point at level 54. Shaft sinking
activities have also commenced.
The first production blast occurred at the Odyssey South deposit
in late March 2023, and the
underground operations are on track to produce approximately 50,000
ounces of gold in 2023.
Sixteen drill rigs are currently active on the Canadian Malartic
property, including: five underground drills in the Odyssey South
and Internal zones; four surface drills focused on expanding and
infilling the East Gouldie mineralization; four drill rigs
investigating new regional targets around the Odyssey mine and
Canadian Malartic mines; and three drill rigs investigating
near-surface targets at the Camflo property.
During the first quarter of 2023 on a 100% basis, 22,358 metres
of expensed drilling and 33,506 metres of capitalized drilling were
completed. Drilling targeted several areas that are part of
the Odyssey mine, including the infill of the East Gouldie deposit
from surface and of the Odyssey South and Odyssey Internal zones
from the exploration ramp.
Exploration drilling also continued to investigate the broader
East Gouldie mineralized zone and extended the zone laterally to
the east and to the west. Regional exploration drilling was mostly
focused on a first phase of investigation of the near-surface
potential around the past-producing Camflo mine located 4.0
kilometres northeast of the Odyssey mine infrastructure.
The Company is planning to provide an update on the Odyssey mine
with an internal study as well as exploration results and
exploration plans on the larger Canadian Malartic land package in
June 2023.
Detour Lake Mine
In the first quarter of 2023, the mill set a record for first
quarter throughput and activities continued to focus on mill
process optimization and improving availability with the goal of
achieving and potentially exceeding throughput of 28.0 Mtpa.
In 2023, the processing plant will focus on runtime
improvements, monitoring the higher throughput and enhancing the
Company's understanding of the normal wear and tear on the
equipment to better optimize and stabilize the throughput.
Exploration drilling at Detour Lake in the first quarter of 2023
was primarily focused on West Pit conversion drilling and
exploration drilling of various regional targets. Ten drill rigs
were active and completed 5,839 metres of expensed drilling and
59,374 metres of capitalized drilling.
During the quarter, approximately 20,000 metres of infill
drilling targeted gold mineralized horizons within and below the
West Pit mineral reserves to examine the continuity of gold grades
between previous drill holes. These areas contain higher grade
zones currently being investigated for underground mining
potential. The program targeted two areas: at the western limit of
the West Pit and close to the eastern limit of the West Pit.
Recent drill results from infill drilling at the western limit
of the West Pit mineral resources correlate well with the initial
drilling in the area and continue to define wide zones of gold
mineralization containing high grade gold inclusions.
Highlights include: hole DLM23-617, which intersected 2.9 g/t gold
over 30.4 metres at 309 metres depth; hole DLM23-631, which
intersected 3.0 g/t gold over 26.3 metres at 294 metres depth and
2.6 g/t gold over 27.5 metres at 450 metres depth, including 10.7
g/t gold over 5.0 metres at 468 m
depth; hole DLM23-641, which intersected 6.7 g/t gold over 29.6
metres at 424 metres depth, including 16.2 g/t gold over 11.1
metres at 431 m depth; hole
DLM23-601, which intersected 4.6 g/t gold over 15.4 metres at 311
metres depth and 2.8 g/t gold over 10.1 metres at 395 metres depth;
and hole DLM23-603, which intersected 3.7 g/t gold over 17.3 metres
at 271 metres depth, 3.0 g/t gold over 9.7 metres at 314 metres
depth and 3.0 g/t gold over 18.0 metres at 410 metres depth.
Recent infill drilling results from the eastern limit of the
West Pit mineral reserves and mineral resources confirm wide zones
of gold mineralization containing high grade gold inclusions.
Highlights include: hole DLM23-593W, which intersected 3.5 g/t gold
over 15.1 metres at 306 metres depth, 3.0 g/t gold over 13.1 metres
at 361 metres depth and 2.5 g/t gold over 15.8 metres at
495 m depth; hole DLM23-599, which
intersected 1.7 g/t gold over 57.0 metres at 475 metres depth and
4.8 g/t gold over 25.6 metres at 550 metres depth; and hole
DLM23-616, which intersected 2.9 g/t gold over 25.3 metres at 439
metres depth and 3.2 g/t gold over 20.3 metres at 474 metres
depth.
Exploration drilling in the West Pit Extension Zone targeting
the westerly plunge of the deposit below and west of the West Pit
Zone continues to be encouraging. First quarter results
include additional wide intervals of gold mineralization with
high-grade intersections that support the potential to continue
growing the "out-pit" mineralization, which extends more than 2.4
kilometres west of the current mineral resource pit.
Recent drilling in the West Pit Extension Zone further confirms
the down-plunge western extension of the deposit, with highlights
that include: hole DLM22-579, which intersected 0.9 g/t gold over
68.7 metres at 824 metres depth and 2.8 g/t gold over 10.7 metres
at 872 metres depth; hole DLM22-577, which intersected 2.3 g/t gold
over 22.4 metres at 752 metres depth and 14.1 g/t gold over 8.4
metres at 777 metres depth at a distance of 451 metres down-plunge
to the west from the current mineral resource pit; and hole
DLM22-580, which intersected 4.2 g/t gold over 21.3 metres at 660
metres depth.
Planned drilling at Detour Lake for the full year 2023 is
comprised of 14,000 metres of expensed drilling and 157,000 metres
of capitalized drilling.
Selected recent drill results from Detour Lake are set out in a
table in the Appendix and in the plan map and composite
longitudinal section below.
[Detour Lake Mine – Plan Map and Composite Longitudinal
Section]
The Company is integrating additional drill data from late 2022
and the first quarter of 2023 into a revised mineral resource model
that will be used to evaluate potential underground mining
scenarios. An internal evaluation of the underground mining
potential is expected to be completed by early 2024.
Optimization of assets and capital infrastructure, including
excess mill capacity in the Abitibi region
With the closing of the Yamana Transaction, the Company expects
to have up to 40,000 tpd of excess mill capacity at Canadian
Malartic starting in 2028. By maximizing the mill throughput on a
regional basis, the Company believes there is potential to increase
future gold production at lower capital costs and with a reduced
environmental footprint. Internal evaluations are underway to
assess potential production opportunities at the Macassa near
surface deposits and the AK deposit, Upper Beaver and other
Kirkland Lake satellite deposits,
as well as the Wasamac project.
The near surface and AK deposits are accessible from an existing
surface ramp at Macassa. Production from the near surface
deposits is expected to commence later this year, while production
from the AK deposit could potentially begin in 2024.
Alternatives to process these ores at the LaRonde complex, which is
approximately 130 kilometres away, and avoid capital costs
associated with a mill expansion at Macassa are under review.
Average annual production from these two deposits could potentially
be 20,000 to 40,000 ounces of gold, commencing in 2024.
Infill drilling in the AK deposit during the first quarter of
2023 featured highlights of 14.7 g/t gold over 5.3 metres at 295
metres depth in hole KLAK-169 and 13.0 g/t gold over 4.9 metres at
264 metres depth in hole KLAK-171. The AK deposit remains open
towards the west and vertically along the west fringe.
Upper Beaver has the potential to be a low-cost mine, with the
Company evaluating scenarios with annual production of 150,000 to
200,000 ounces of gold with moderate capital outlays and initial
production potentially commencing in 2029. Processing scenarios
with the potential to reduce initial capital costs are being
considered, including transporting the ore to the Canadian Malartic
mill for processing. An updated internal technical evaluation of
the project is expected to be completed in late 2023.
Prior to the closing of the Yamana Transaction, Yamana completed
29 drill holes totalling 14,673 metres at the Wasamac project
in the Abitibi region of Quebec.
The objectives of the drill program were to infill the Main
deposit at Wasamac, with a highlight result of 4.7 g/t gold over
54.1 metres at 463 metres depth in hole WS22-589, and investigate
the vertical and lateral extensions of mineralization at the
past-producing Francoeur Mine, which forms part of the Wasamac
project.
The Company is reviewing the recent exploration programs and
studies that were completed at the Wasamac project and assessing
the potential for exploration upside prior to continuing further
exploration. An updated technical evaluation of the project
is expected to be completed in late 2023. More details on the
Wasamac project were provided in the Company's news release of
February 16, 2023.
Hope Bay – Drilling Continues at Doris and Madrid; Multiple High-Grade Zones Confirmed
and Extended
Exploration drilling at Hope Bay continued during the first
quarter of 2023, with six drill rigs operating on surface at the
Doris and Madrid deposits and
three drill rigs operating underground at Doris, completing a total
of 39,859 metres in 79 holes.
At Doris, highlight hole HBBCO23-153 intersected 15.0 g/t gold
over 6.4 metres at 422 metres depth to expand the vertical size of
the BCO fold hinge, which is a high-grade shoot within the BCO
Zone. Hole HBD23-071 extended the BCO Zone to the south by
200 metres along strike and down plunge of known mineralization,
intersecting 17.1 g/t gold over 4.8 metres at a vertical depth of
607 metres.
Underground development advanced during the quarter, allowing
exploration drilling to test additional BCO and BCN targets to the
south from underground.
At Madrid, exploration drilling
during the first quarter of 2023 shifted towards wider step-out
holes at a spacing of 100 metres or more from known mineralization
in the Naartok East, Spur, Suluk and Patch 7 zones. Highlights
include hole HBM23-065 at Naartok East, which intersected 6.8 g/t
gold over 3.7 metres at 336 metres depth. Results from step-out
drilling at Suluk and Patch 7 are pending.
Drilling is also planned this year at regional targets outside
of the main deposit footprints, including the southern extension of
the Doris geological structure located one kilometre east of the
Madrid deposit.
At the Hope Bay property in 2023, the Company expects to
complete 72,200 metres of drilling in a $30.6 million exploration program that includes
30,800 metres of underground exploration drilling at the Doris
deposit to explore the extensions of mineralization and potentially
add mineral reserves and mineral resources in the BTD Zone to the
north and in the BCO, BCN and West Valley zones below the
dike. The Company expects to spend $17.3 million for 41,400 metres of surface
drilling into exploration targets around the Doris mine, between
the Doris and Madrid deposits, and
around the Madrid deposit with the
objective of adding mineral reserves and mineral resources to the
project.
The Company continues to advance an internal technical study
evaluating larger production scenarios for Hope Bay.
Agnico Eagle Completes Acquisition of Yamana's Canadian
Assets, Integration Underway
On March 31, 2023, the Company
closed the previously announced Yamana Transaction, pursuant to
which the Company acquired certain subsidiaries and partnerships
which hold Yamana's interests in its Canadian assets, including the
Canadian Malartic complex. As part of the Yamana Transaction, Pan
American Silver Corp. acquired all the issued and outstanding
common shares of Yamana.
With the closing of the Yamana Transaction, Agnico Eagle now
owns 100% of the Canadian Malartic complex, the Wasamac project
located in the Abitibi region of Quebec and several other exploration
properties located in Ontario and
Manitoba. Over the last 18 months,
the Company has solidified its presence in the Abitibi gold belt, a
region the Company believes has low political risk and high
geological potential, and where it has a strong competitive
advantage from having operated there for over 50 years. The
Company's production in the Abitibi gold belt is forecast to be
between 1.9 million ounces to 2.1 million ounces of gold per year
through 2025. In addition, the Company believes it has the unique
ability to monetize future mill capacity at the Canadian Malartic
complex, given its extensive operations and strategic land position
in the region.
The Company's 2023 production and costs guidance assumed 50%
ownership of Canadian Malartic for the first three months of 2023
and 100% ownership for the last nine months of the year, which
essentially matches the closing date of the Yamana Transaction. For
additional details on the Company's 2023 guidance, see the
Company's news release dated February 16,
2023.
For additional details with respect to the Yamana Transaction,
see the Company's news releases dated November 4, 2022, November
8, 2022 and March 31,
2023.
Agnico Eagle and Teck Resources Enter Into Joint Venture
Agreement in Respect of the San Nicolás Copper-Zinc Project in
Mexico
On April 6, 2023, the Company and
Teck entered into the previously announced 50/50 joint venture
agreement in respect of the San Nicolás copper-zinc development
project located in Zacatecas,
Mexico. Under the terms of the agreement, Agnico Eagle
subscribed for a 50% interest in Minas de San Nicolás, S.A.P.I. de
C.V. ("MSN"), a wholly-owned Mexican subsidiary of Teck, for
US$580 million. Agnico Eagle
will contribute the amount as study and development costs are
incurred by MSN. For governance purposes, Agnico Eagle is deemed to
be a 50% shareholder of MSN from closing, regardless of the number
of shares that have been issued to Agnico Eagle or its
subsidiaries, except in certain circumstances of default.
MSN is now working to advance permitting and development of the
project and is planning to submit an Environmental Impact
Assessment and permit application for San Nicolás in 2023 and is
targeting completion of a feasibility study in 2024. Agnico Eagle's
funding of MSN in the first two years is expected to be
approximately $50 million.
For additional details with respect to the San Nicolás
transaction, see the Company and Teck's joint news releases dated
September 16, 2022 and April 6, 2023.
ABITIBI REGION, QUEBEC
Agnico Eagle is Quebec's
largest gold producer with a 100% interest in the LaRonde complex
(which includes the LaRonde and LZ5 mines), the Goldex mine and, as
of March 31, 2023 following the
closing of the Yamana Transaction, the Canadian Malartic complex.
These mines are located within 50 kilometres of each other, which
provides operating synergies and allows for the sharing of
technical expertise.
LaRonde Complex – Strong Underground Productivity Drives
Solid Operational Performance in the First Quarter of 2023
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
The LZ5 property lies adjacent to and west of the LaRonde mine and
previous operators exploited the zone by open pit mining. The LZ5
mine achieved commercial production in June
2018.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
707
|
|
735
|
Tonnes of ore milled
per day
|
|
7,867
|
|
8,167
|
Gold grade
(g/t)
|
|
3.72
|
|
4.72
|
Gold production
(ounces)
|
|
79,607
|
|
105,037
|
Production costs per
tonne (C$)
|
|
$
118
|
|
$
108
|
Minesite costs per
tonne (C$)8
|
|
$
157
|
|
$
121
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
778
|
|
$
596
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
958
|
|
$
560
|
___________________________
8 Minesite
costs per tonne is a non-GAAP measure that does not have a
standardized meaning under IFRS. For a reconciliation to
production costs see "Reconciliation of Non-GAAP Performance
Measures" below. See also "Note Regarding Certain Measures of
Performance".
Gold production in the first quarter of 2023 decreased when
compared to the prior-year period primarily due to lower gold
grades and lower throughput related to changes in the mining
sequence at the LaRonde mine (for more information see the news
release dated February 16, 2023).
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily as a
result of higher unit costs for consumables combined with lower
mill throughput levels, partially offset by the timing of unsold
concentrate inventory. Production costs per ounce in the first
quarter of 2023 increased when compared to the prior-year period
primarily due to higher production costs per tonne and lower gold
grades, partially offset by a weaker Canadian dollar relative to
the U.S. dollar.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period primarily due to higher unit
costs for consumables combined with lower mill throughput levels.
Total cash costs per ounce in the first quarter of 2023 increased
when compared to the prior-year period primarily due to higher
minesite costs per tonne, lower gold grades and lower revenues from
by-product sales, partially offset by a weaker Canadian dollar
relative to the U.S. dollar.
Operational Highlights
- In 2023, the LaRonde mine is transitioning to pillarless mining
and an adjusted development plan to manage seismicity within the
mine, resulting in a lower mining rate when compared to the prior
year
- The first quarter of 2023 saw higher than expected gold
production due to solid underground productivity. The underground
development performance at the LaRonde mine exceeded expectations
by over 450 metres following delivery of bolting equipment and a
training plan implemented in the second half of 2022. Underground
development at the LZ5 mine also progressed well and remains on
target. Development performance is key to providing operational
flexibility in 2023
- The LZ5 processing facility is planned to be idled late in the
third quarter of 2023 to take advantage of the approximately 2,000
tpd of excess capacity in the LaRonde mill. In the third quarter of
2023, a seven day shutdown is scheduled at the LaRonde mill and
some adjustments will be made to the copper circuit for future
processing of Akasaba West copper bearing concentrate
Project Highlights
- Production in the 11-3 Zone at the LaRonde mine is expected to
start in the third quarter of 2023 as previously planned. The
required breakthrough of ramps and design of the pastefill network
is currently in progress. The 11-3 Zone is expected to add
additional flexibility in the LaRonde mine production plan
Exploration Highlights
- At LZ5 in the first quarter of 2023, drilling on the Ellison
property further confirmed the continuity of Zone 5 gold
mineralization to a depth of 950 metres. Highlights include: hole
BZ-2022-032, which intersected 3.0 g/t gold over 30.0 metres at 671
metres depth; and hole BZ-2022-028, which intersected 3.7 g/t gold
over 10.1 metres at 840 metres depth. Inferred mineral resources
are expected to be added at depths between 770 and 950 metres by
year-end 2023
- Exploration development activities in 2023 at the LaRonde
complex includes the further extension of the exploration drift on
level 215 by 1,060 metres to the west to provide drill platforms to
test the vertical extensions of known zones on the Bousquet
property and below the LZ5 deposit, with drilling expected to begin
in the second half of the year
Canadian Malartic Complex –
Underground Production Commences at Odyssey; Surface Construction
Activities and Underground Development at Odyssey Continue to
Progress
In June 2014, each of Agnico Eagle
and Yamana acquired a 50% ownership interest in the Canadian
Malartic mine. All volume data in this section reflect the
Company's 50% interest in the Canadian Malartic complex during the
quarter, except as otherwise indicated. The Odyssey
underground project was approved for construction in February
2021. Following closing of the Yamana Transaction
on March 31, 2023, the Company now owns a 100% interest in the
Canadian Malartic complex.
Canadian Malartic
Mine – Operating Statistics*
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
4,524
|
|
4,824
|
Tonnes of ore milled
per day (100%)
|
|
50,267
|
|
53,600
|
Gold grade
(g/t)
|
|
1.19
|
|
1.16
|
Gold production
(ounces)
|
|
80,685
|
|
80,509
|
Production costs per
tonne (C$)
|
|
$
34
|
|
$
30
|
Minesite costs per
tonne (C$)
|
|
$
39
|
|
$
34
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
710
|
|
$
707
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
794
|
|
$
792
|
*Operating statistics
for the first quarter of 2023 reflect Agnico Eagle's 50% interest
in the Canadian Malartic mine up to and including March 30, 2023
and 100% thereafter.
|
Gold production in the first quarter of 2023 increased slightly
when compared to the prior-year period primarily due to higher gold
grades and gold recoveries, mostly offset by lower mill
throughput. As planned, starting in February 2022, the mill throughput levels were
reduced to approximately 51,500 tpd (on a 100% basis) in an effort
to optimize the production profile and cash flows during the
transition to processing ore from the Odyssey underground
project.
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily due to
higher mining costs associated with higher fuel prices and
maintenance costs. Production costs per ounce in the first
quarter of 2023 increased slightly when compared to the prior-year
period primarily for the same reason as the higher production costs
per tonne, partially offset by higher gold grades and gold recovery
and the weaker Canadian dollar relative to the U.S. dollar.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior year period for the same reasons as the
increase in production costs per tonne. Total cash costs per ounce
in the first quarter of 2023 increased slightly when compared to
the prior-year period primarily due to the same reasons as the
increase in production costs per ounce.
Operational Highlights
- The Odyssey project achieved a total recordable injury
frequency of zero for the quarter
- The first production blast from the Odyssey underground mine
occurred in March 2023, with gold
production totaling 2,799 ounces mostly from development ore.
Processing of production ore is expected to begin in the second
quarter of 2023. Overall, development continues to progress well,
with greater than planned development performance. Underground
development via ramp access has now passed the bottom of the
Odyssey South deposit and has reached the level of the first shaft
access point
- Mining activities in the Canadian Malartic pit continued to
advance as planned and the mining of the Canadian Malartic pit is
expected to be completed midway through the second quarter of 2023.
Upon depletion of the Canadian Malartic pit, work will be
undertaken to prepare for in-pit tailings disposal, which is
expected to start in the second half of 2024
Project and Exploration Highlights
- An update on Odyssey project development, construction and
exploration highlights is set out in the Update on Key Value
Drivers and Pipeline Projects section above
Yamana Transaction
- The Yamana Transaction closed on March
31, 2023. An update on the Yamana Transaction is set out
under the caption "Agnico Eagle Completes Acquisition of Yamana's
Canadian Assets, Integration Underway" above
Goldex – Solid Operational Performance Driven by Strong
Underground Development Activity and Higher Grades; Akasaba West
Progressing as Planned
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial
production from the Deep 1 Zone commenced on July 1, 2017. The Company approved the
development of the Akasaba West project, located less than 30
kilometres from Goldex, in July
2022.
Goldex Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
698
|
|
743
|
Tonnes of ore milled
per day
|
|
7,756
|
|
8,256
|
Gold grade
(g/t)
|
|
1.73
|
|
1.63
|
Gold production
(ounces)
|
|
34,023
|
|
34,445
|
Production costs per
tonne (C$)
|
|
$
54
|
|
$
45
|
Minesite costs per
tonne (C$)
|
|
$
52
|
|
$
46
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
818
|
|
$
761
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
810
|
|
$
777
|
Gold production in the first quarter of 2023 decreased slightly
when compared to the prior-year period primarily due to lower
throughput levels as a result of low ore availability in the Deep 1
Zone, partially offset by higher grade and tonnage from
the South Zone.
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily due to
lower processed tonnes and the timing of previously unsold
concentrate inventory. Production costs per ounce in the first
quarter of 2023 increased when compared to the prior-year period
primarily for the same reasons as the higher production costs per
tonne, partially offset by gold grades and the weaker Canadian
dollar relative to the U.S. dollar.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period due to higher underground
production costs. Total cash costs per ounce in the first quarter
of 2023 increased when compared to the prior-year period for the
same reasons as the higher minesite costs per tonne, partially
offset by higher gold grades and the weaker Canadian dollar
relative to the U.S. dollar.
Operational Highlights
- Goldex achieved above-forecast gold production for the first
quarter of 2023, due to higher gold grades and development in the
South Zone
- The underground development training program for dynamic ground
support, implemented in the second half of 2022, has resulted in
continuous improvements in underground development and, in the
first quarter of 2023, development exceeded the plan by over 400
metres. This success will support the development of production
areas in the South Zone and Deep 2 Zone that is planned for
2023
- The health and safety performance at Goldex in the first
quarter of 2023 was excellent, with no lost time incidents and no
modified work incidents reported
Akasaba West Project
- Work at the Akasaba West project commenced in September 2022 and remained on schedule for
overburden removal in the first quarter of 2023, with over 670,000
tonnes of material removed to date. Construction of surface
infrastructure is also progressing on schedule, including offices,
a garage and water treatment
Exploration Highlights
- Exploration at Goldex during the first quarter of 2023
continued to target the eastern extension of the South Zone in
Sector 3, with the objective of converting mineral resources into
mineral reserves and extending Sector 3 at depth and to the east
below level 140
- Highlights from the conversion drilling in Sector 3 include:
hole GD128-083, which intersected 4.7 g/t gold over 10.5 metres at
1,267 metres depth; hole GD128-086, which intersected 4.1 g/t gold
over 5.3 metres at 1,233 metres depth and 4.4 g/t gold over 5.5
metres at 1,225 metres depth; hole GD128-109, which intersected 6.0
g/t gold over 12.0 metres at 1,274 metres depth; and hole
GD128-111, which intersected 9.8 g/t gold over 15.5 metres at 1,246
metres depth
- Exploration drilling is also ongoing to test the continuity of
mineralization to a depth of 2.3 kilometres in the Deep 3 Zone
mining zone beneath the current operations in the Deep 2 Zone, with
results expected later this year
- Additional exploration drilling during the first quarter of
2023 intersected the W Zone at a relatively shallow depth
approximately 200 metres west of the main deposit at Goldex, with
an initial result of 1.8 g/t gold over 35.0 metres at 480 metres
depth in hole GD27-053 in a mineralized shoot displaying
quartz-tourmaline-albite vein mineralization similar to the
past-producing MMx Zone at Goldex
ABITIBI REGION, ONTARIO
Agnico Eagle acquired the Detour Lake and Macassa mines on
February 8, 2022 as a result of the
Merger with Kirkland Lake Gold. With
the inclusion of these two assets in its portfolio, the Company is
now Ontario's largest gold
producer. Furthermore, the proximity of these mines to the
Company's operations located in the Abitibi region of Quebec is expected to provide future operating
synergies and allow for future sharing of technical expertise.
Detour Lake – Achieves Best Ever Winter Mill Performance;
Exploration Continues to Infill and Test Western Extensions of
Mineralization
The Detour Lake mine is located in northeastern Ontario, approximately 300 kilometres
northeast of Timmins and 185
kilometres by road northeast of Cochrane, within the northernmost portion of
the Abitibi Greenstone Belt.
In 1987, Placer Dome Inc. began underground gold production at
the Detour Lake property and during the initial 12 years of mining
(from 1987 to 1999) production was approximately 1.7 million ounces
of gold from approximately 14.3 million tonnes grading 3.82 g/t
gold. In 2013, Detour Gold Corporation restarted gold
production using open pit mining. The Detour Lake mine is now the
largest gold producing mine in Canada with the largest gold reserves and
substantial growth potential. It has an estimated mine life of
approximately 30 years.
Detour Lake –
Operating Statistics*
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
6,397
|
|
3,270
|
Tonnes of ore milled
per day
|
|
71,078
|
|
62,885
|
Gold grade
(g/t)
|
|
0.86
|
|
1.03
|
Gold production
(ounces)
|
|
161,857
|
|
100,443
|
Production costs per
tonne (C$)
|
|
$
24
|
|
$
46
|
Minesite costs per
tonne (C$)
|
|
$
26
|
|
$
24
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
704
|
|
$
1,194
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
771
|
|
$
600
|
*For the Three
Months Ended March 31, 2022, the operating statistics are reported
for the period from February 8, 2022 to March 31,
2022.
|
Gold production in the first quarter of 2023 increased when
compared to the prior year period reflecting a full quarter of
production in 2023 as opposed to 51 days in 2022 following the
Merger and higher mill throughput, partially offset by lower
gold grades.
Production costs per tonne in the first quarter of 2023
decreased when compared to the prior-year period primarily due to
the purchase price allocation to inventory which require it to be
realized at fair value in the first quarter of 2022 and the timing
of inventory. Production costs per ounce in the first quarter of
2023 decreased when compared to the prior-year period primarily due
to the same reasons as outlined above.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period due to lower deferred
stripping expense. Total cash costs per ounce in the first quarter
of 2023 increased when compared to the prior-year period due to
different processing volumes as a result of the number of
reportable production days, as well as higher mining and milling
costs.
Operational Highlights
- In the first quarter of 2023, Detour Lake recorded its
strongest quarterly health and safety performance since the restart
of operations in 2013
- Detour Lake achieved its best ever first quarter mill
performance. Historically, the Detour Lake mine processes lower
volumes of ore in winter months as a result of cold temperatures
and their effect on material handling. First quarter results are as
expected with respect to the mine growth strategy as the operation
continues to optimize processes to further increase milling rates
and to adapt its plant maintenance strategy to account for the
higher tonnage processed
- In the first quarter of 2023, the mining sequence was adjusted
due to the interaction with nearby old underground mine workings
resulting in a delay in reaching high grade ore in Phase 2
- During the quarter, the mine continued to ramp up production
with the commissioning of four higher capacity haul trucks (CAT 798
trucks). Two additional units are planned to be commissioned in the
second quarter
Project and Exploration Highlights
- An update on the multiple initiatives to increase mill
throughput to 28.0 Mtpa by 2025, potential expansion scenarios and
exploration highlights is set out under the caption "Update on Key
Value Drivers and Pipeline Projects" above
Macassa – Six Millionth Gold Ounce Poured; Strong Operational
and Cost Performance from Continued Productivity Improvements;
Commissioning Complete on Shaft #4
The Macassa mine, located in northeastern Ontario, began production in 1933.
Operations have been continuous except from 1999 to 2002 when they
were suspended due to low gold prices. Underground
mining restarted in 2002 and has been predominantly focused on
production from two areas: the South Mine complex and the Main
Break.
Macassa Mine –
Operating Statistics*
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
87
|
|
47
|
Tonnes of ore milled
per day
|
|
967
|
|
902
|
Gold grade
(g/t)
|
|
23.32
|
|
16.64
|
Gold production
(ounces)
|
|
64,115
|
|
24,488
|
Production costs per
tonne (C$)
|
|
$
589
|
|
$
871
|
Minesite costs per
tonne (C$)
|
|
$
585
|
|
$
523
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
592
|
|
$
1,320
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
604
|
|
$
787
|
*For the Three
Months Ended March 31, 2022, the operating statistics are reported
for the period from February 8, 2022 to March 31,
2022.
|
Gold production in the first quarter of 2023 increased when
compared to the prior year period reflecting a full quarter of
production in 2023 as opposed to the 51 days in 2022 following the
Merger and higher gold grades and higher mill throughput in the
first quarter of 2023.
Production costs per tonne in the first quarter of 2023
decreased when compared to the prior-year period primarily due to
the purchase price allocation to inventory which required it to be
realized at fair value in the first quarter of 2022 and the timing
of inventory. Production costs per ounce in the first quarter of
2023 decreased when compared to the prior-year period primarily due
to the same reasons as outlined above and higher gold grades.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period due to higher mining and
administration costs. Total cash costs per ounce in the first
quarter of 2023 decreased when compared to the prior-year period
due to higher gold grades, partially offset by higher mining and
administration costs.
Operational Highlights
- In January 2023, Macassa
celebrated its six millionth ounce of gold poured since 1933 when
mining first began on the property
- The Macassa mine continued to build on productivity gains
achieved throughout 2022, supported by improved ventilation, a
better adherence to the mining plan, improved maintenance processes
and the commissioning of shaft #4
- In the first quarter of 2023, the Macassa mine achieved its
second best quarterly health and safety performance since the
restart of operations in 2002, with its best performance recorded
in the fourth quarter of 2022
Project Highlights
- The Shaft #4 production hoist was commissioned in the first
quarter of 2023. Development work to connect the new shaft
infrastructure to the existing mining areas and construction of the
conveyor loadout station, rock breakers and loading pocket were
also completed during the quarter. These projects are expected to
significantly improve underground material handling going
forward
- The upgrade of the ventilation system progressed as planned. In
the first quarter of 2023, one of the two 3,000 horsepower fans was
commissioned and the second fan is expected to be commissioned in
the second quarter of 2023
Exploration Highlights
- Exploration drilling at Macassa during the first quarter of
2023 was highlighted by hole 58-794 in the SMC East Zone, which
intersected 26.6 g/t gold over 1.9 metres at 1,695 metres depth
approximately 55 metres east of current mineral resources and hole
53-4699, which intersected 14.6 g/t gold over 1.9 metres at 2,039
metres depth in the Lower Main Break Zone approximately 500 metres
east of the current Lower Main Break mineral resource
NUNAVUT
Agnico Eagle considers Nunavut
a politically attractive and stable jurisdiction with enormous
geological potential. With the Company's Meliadine mine and
Meadowbank complex (which includes the Amaruq satellite deposit),
together with the Hope Bay project and other exploration projects,
Nunavut has the potential to be a
strategic operating platform for the Company with the ability to
generate strong gold production and cash flows over several
decades.
Meliadine Mine – Record Mill Availability Drives Second
Consecutive Quarter of Record Mill Throughput
Located near Rankin Inlet in
the Kivalliq District of Nunavut,
Canada, the Meliadine project was acquired in July 2010. The Company owns 100% of the
98,222-hectare property. In February
2017, the Company's Board of Directors approved the
construction of the Meliadine project and commercial production was
declared on May 14, 2019.
Meliadine Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
476
|
|
432
|
Tonnes of ore milled
per day
|
|
5,300
|
|
4,800
|
Gold grade
(g/t)
|
|
6.12
|
|
6.03
|
Gold production
(ounces)
|
|
90,467
|
|
80,704
|
Production costs per
tonne (C$)
|
|
$
228
|
|
$
230
|
Minesite costs per
tonne (C$)
|
|
$
239
|
|
$
241
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
897
|
|
$
975
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
937
|
|
$
1,002
|
Gold production in the first quarter of 2023 increased when
compared to the prior-year period primarily due to higher mill
throughput levels resulting from higher tonnes mined from the open
pit.
Production costs per tonne in the first quarter of 2023
decreased slightly when compared to the prior-year period due a
higher mining rate resulting in a favourable stockpile inventory
adjustment and higher deferred stripping expense, partially offset
by higher costs associated with additional volumes mined from the
open pit and higher maintenance costs relating to cost pressures on
workforce and transportation. Production costs per ounce in the
first quarter of 2023 decreased when compared to the prior-year
period as a result of the weaker Canadian dollar relative to the
U.S. dollar and higher gold grades.
Minesite costs per tonne in the first quarter of 2023 decreased
slightly when compared to the prior-year period primarily due to
the same reasons that resulted in lower production costs per tonne.
Total cash costs per ounce in the first quarter of 2023 decreased
when compared to the prior-year period due to the same reasons that
resulted in the lower production costs per ounce.
Operational Highlights
- Despite extreme cold weather impeding outdoor activities for
several days in the first quarter of 2023, Meliadine exceeded its
targets with regards to ore hauling and total material moved from
the open pit as a result of the accelerated mining sequence in the
quarter
- In the underground mine, Meliadine achieved good performance in
lateral development. A milestone was achieved in the first quarter
with modifications made to ramp #1, which will allow for better
maneuverability and for payloads to be increased when hauling from
this ramp, allowing for more operational flexibility
- Meliadine achieved record quarterly mill throughput in the
first quarter of 2023 as a result of record mill availability.
However, lower than planned gold grades from underground stopes on
the edges of the mineralized zones with higher complexity resulted
in slightly lower than forecast gold production
- Meliadine received certification under the International
Cyanide Management Code for cyanide transportation during the first
quarter of 2023.
Project Highlights
- The Phase 2 mill expansion is expected to be completed in
mid-2024 and the processing rate ramp-up is expected to increase
throughput to achieve 6,000 tpd by year-end 2024. Cold weather
affected productivity with minor delays in the outdoor construction
of the carbon-in-leach and filter press building. Construction
activities continued to progress on the power plant, secondary
grinding building and the second underground mine air intake
- Terms of Reference were completed between parties from the
Terrestrial Advisory Group, allowing the start of construction for
the future waterline
Exploration Highlights
- Exploration drilling during the first quarter at Meliadine
totaled 74 holes (18,480 metres) and targeted the vertical
extensions of mineralized zones in the central part of the
Tiriganiaq and Wesmeg deposits. The drilling was carried out from
both surface and the new exploration ramp that provides a platform
at approximately 460 metres depth and extends deeper towards the
west. The ramp permits the efficient testing of the deposit along
the plunge of the ore body below 700 metres depth, which has been
the lower limit of surface drilling at Tiriganiaq historically
- At Tiriganiaq, a recent intercept in hole ML425-9740-D5 yielded
17.2 g/t gold over 4.9 metres at 770 metres depth and drill hole
ML425-9740-D36 yielded 7.5 g/t gold over 8.0 metres at 893 metres
depth, which represents the deepest intercept to date on the
property
- At Wesmeg, drilling in the eastern part of the deposit
continues to return wide, high-grade intersections, with recent
highlights including 8.9 g/t gold over 7.0 metres at 532 metres
depth in hole ML400-10200-D10
- The recent gold mineralized intersections drilled at the
Tiriganiaq and Wesmeg deposits are up to approximately 250 metres
and 100 metres, respectively, below the current mineral resource
envelope and the Company anticipates they will have a positive
impact on the mineral resource update at year-end
- Recent results in the eastern and vertical extensions of both
the Tiriganiaq and Wesmeg deposits suggest that the exploration
ramp should be extended towards these areas of mineralization that
present good potential for the addition of mineral resources with
further exploration drilling
- Selected recent exploration drill intercepts from the
Tiriganiaq and Wesmeg deposits at the Meliadine property are set
out in a table in the Appendix and in the plan map and composite
longitudinal section below
[Meliadine Mine – Plan Map & Composite Longitudinal
Section]
Meadowbank Complex – Solid Gold Production From Higher Open
Pit Grades and Contribution from Amaruq Underground
The 100% owned Meadowbank complex is located approximately 110
kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The complex consists of the
Meadowbank mine and mill and the Amaruq satellite deposit, which is
located 50 kilometres northwest of the Meadowbank mine. The
Meadowbank mine achieved commercial production in March 2010, and mining activities at the site
were completed by the fourth quarter of 2019.
The Amaruq mining operation uses the infrastructure at the
Meadowbank minesite as well as additional infrastructure built at
the Amaruq site. Amaruq ore is transported using long haul off-road
type trucks to the mill at the Meadowbank site for processing. The
Amaruq satellite deposit achieved commercial production on
September 30, 2019.
Meadowbank Complex –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
983
|
|
892
|
Tonnes of ore milled
per day
|
|
10,922
|
|
9,911
|
Gold grade
(g/t)
|
|
3.91
|
|
2.26
|
Gold production
(ounces)
|
|
111,110
|
|
59,765
|
Production costs per
tonne (C$)
|
$
|
176
|
$
|
137
|
Minesite costs per
tonne (C$)
|
$
|
174
|
$
|
156
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,170
|
$
|
1,618
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,134
|
$
|
1,811
|
Gold production in the first quarter of 2023 increased when
compared to the prior-year period primarily due to higher gold
grades from the Whale Tail and IVR open pits and Amaruq underground
and higher mill throughput from the addition of underground
mining.
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily due to
the start of underground mining at Amaruq, the timing of inventory
sales and higher fuel costs from higher fuel prices and higher
consumption, partially offset by favourable deferred stripping and
inventory adjustments. Production costs per ounce in the first
quarter of 2023 decreased when compared to the prior-year period
due to higher gold grades and the weaker Canadian dollar relative
to the U.S. dollar, partially offset by the timing of inventory
sales and the reasons set out above that resulted in higher
production costs per tonne.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period primarily due to the start
of underground mining at Amaruq underground and higher mining and
milling costs related to higher fuel and consumables costs,
partially offset by favourable deferred stripping and inventory
adjustments. Total cash costs per ounce in the first quarter of
2023 decreased when compared to the prior-year period due to higher
gold grades and the weaker Canadian dollar relative to the U.S.
dollar, partially offset by the reasons set out above that resulted
in higher minesite costs per tonne.
Operational Highlights
- In the first quarter of 2023, Meadowbank recorded its best
global combined injury frequency rate since 2016
- Mill throughput was lower than planned for the quarter
resulting from lower than planned availability of the SAG mill. The
team continues to advance optimization efforts in the process
plant, with an upward trend in the utilization of the high pressure
grinding rolls and with a tenth leach tank commissioned in February
with positive initial results
- Underground development also continues to ramp up and, while
lower than planned for the first quarter of 2023, the team achieved
record performance in March with 420 metres of advance
- The Company is currently performing upgrades to the recently
commissioned cemented rockfill plant to improve productivity and
reliability. A temporary mobile system continues to be used during
the upgrades, with the cemented rockfill plant expected to restart
midway through the second quarter of 2023
Exploration Highlights
- Drilling at Amaruq continued during the first quarter of 2023
at the Whale Tail deposit with two objectives: to assess the
potential to integrate additional underground stopes in the south
western and north eastern portions of the Whale Tail deposit to
extend mine life; and to assess the potential to eventually push
back the Whale Tail pit to the southwest and further extend the
life of the open pit operations
- Recent highlights from the drilling of underground targets
include: hole AMQ22-2881, which intersected 7.6 g/t gold over 4.2
metres at 177 metres depth outside the current mineral reserves in
the southwestern extension of the Whale Tail deposit; hole
AMQ22-2919, which intersected 12.2 g/t gold over 2.5 metres at 453
metres depth outside the current mineral reserves in the
northeastern depth extension of the Whale Tail deposit; and 5.5 g/t
gold over 9.0 metres at 485 metres depth in hole AMQ-350-006
approximately 100 metres beneath current mineral reserves,
suggesting the potential for further extension of underground
operations
- Highlights from the shallow drilling approximately 150 to 300
metres southwest of the current Whale Tail pit outline include: 5.1
g/t gold over 11.2 metres at 90 metres depth in hole AMQ22-2911;
and 3.8 g/t gold over 10.0 metres at 157 metres depth in hole
AMQ22-2895
Hope Bay Project – Drilling Activities Continued in the First
Quarter of 2023; Larger Production Scenarios Continue to be
Evaluated
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres
southwest of Cambridge Bay, the
Hope Bay project was acquired in February
2021. The Company owns 100% of the 191,342-hectare property,
which includes portions of the Hope Bay and Elu greenstone belts.
The 80-kilometre long Hope Bay greenstone belt hosts three gold
deposits (Doris, Madrid and
Boston) with mineral reserves and
mineral resources and over 90 regional exploration targets. At the
time the Hope Bay project was acquired, construction at the Doris
deposit was complete and commercial production had been achieved in
the second quarter of 2017.
On February 18, 2022, the Company
announced that it decided to maintain the suspension of production
activities at the Doris mine in order to dedicate the
infrastructure of the Hope Bay site to exploration activities. In
conjunction with the exploration activities, the Company continues
to evaluate the potential for a larger production scenario
(targeting 350,000 to 400,000 ounces of gold per year).
An update on exploration carried out in the fourth quarter of
2022 is set out under the caption "Update on Key Value Drivers and
Project Pipeline" above.
AUSTRALIA
Agnico Eagle acquired the Fosterville mine on February 8, 2022 as a result of the Merger.
Fosterville is a 100% owned,
high-grade underground gold mine, located 20 kilometres from the
city of Bendigo, and is the largest gold mine in the state of
Victoria, Australia. The
operation features low-cost gold production, as well as extensive
in-mine and district scale exploration potential.
Fosterville – Four Millionth
Gold Ounce Poured and Solid Production in the First Quarter of
2023
Gold production at the Fosterville mine commenced in 1991 from
shallow oxide open pits and heap-leaching operations and was
suspended in 2001 subsequent to the depletion of oxide ore.
In 2005, gold production restarted as an open pit, sulphide mining
operation, with mining activities transitioning to
underground. Based on exploration success, in particular the
discovery of the high grade Eagle and Swan mineralized zones, the
Fosterville mine output increased
rapidly year over year from 2016 to 2020. The deposit remains
open at depth in the Harrier, Lower Phoenix and Robbins Hill
areas.
Fosterville Mine –
Operating Statistics*
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
148
|
|
91
|
Tonnes of ore milled
per day
|
|
1,644
|
|
1,758
|
Gold grade
(g/t)
|
|
18.55
|
|
28.13
|
Gold production
(ounces)
|
|
86,558
|
|
81,827
|
Production costs per
tonne (A$)
|
|
$
367
|
|
$
1,283
|
Minesite costs per
tonne (A$)
|
|
$
343
|
|
$
367
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
423
|
|
$
1,075
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
396
|
|
$
309
|
*For the Three
Months Ended March 31, 2022, the operating statistics are reported
for the period from February 8, 2022 to March 31,
2022.
|
Gold production in the first quarter of 2023 increased when
compared to the prior-year period reflecting a full quarter of
production in 2023 as opposed to the 51 days in 2022 following the
Merger, partially offset by lower gold grades and lower mill
throughput.
Production costs per tonne in the first quarter of 2023
decreased when compared to the prior-year period primarily due to
the purchase price allocation to inventory which required it to be
realized at fair value in the first quarter of 2022 and the timing
of inventory adjustments. Production costs per ounce in the
first quarter of 2023 decreased when compared to the prior-year
period for the same reasons that resulted in lower production costs
per tonne, partially offset by lower gold grades.
Minesite costs per tonne in the first quarter of 2023 decreased
when compared to the prior-year period primarily due to the timing
of inventory adjustments. Total cash costs per ounce in the
first quarter of 2023 increased when compared to the prior-year
period due to lower gold grades.
Operational Highlights
- In March 2023, Fosterville achieved a production milestone
pouring its four millionth ounce of gold since the beginning of the
sulphide project in 2005
- Production continues to be affected by primary ventilation
operating restrictions related to low frequency noise constraints.
The Company continued to adjust the mining sequence to partially
offset production impacts and was able to deliver a solid
production quarter despite the restrictions
- Abatement works for the low frequency noise were completed in
the first quarter of 2023 and an eight week trial of various fan
speeds was conducted in conjunction with the State of Victoria
Environmental Protection Authority ("EPA"). The Company believes
the results were promising and they are now being considered by the
EPA with respect to the current prohibition notice
- In the first quarter of 2023, the Fosterville mine rescue team provided
emergency response to a neighbouring mine
Project Highlights
- In the first quarter of 2023, work continued on the raise of
the flotation tailings storage facility which is now more than 90%
complete. The raise is expected to provide an additional 17 months
of tailings storage capacity and be completed in the second quarter
of 2023
Exploration Highlights
- Exploration drilling resumed at the end of the first quarter of
2023 in the Lower Phoenix/Swan zone at the Fosterville mine following the 3912 Drill
Drive extension in mid-March. The drilling is also targeting the
Cardinal structure in the hanging wall of the Swan Zone, with
results pending
- Infill drilling in the first quarter into the Cygnet Zone,
parallel to the Swan Zone, yielded highlights of 9.8 g/t gold over
1.9 metres at 1,478 metres depth in hole UDH4553 and 16.6 g/t gold
over 1.8 metres at 1,377 metres depth in hole UDH4646
- At Robbins Hill, exploration drilling into the Curie Fault Zone
yielded good results up to 100 metres outside of the current
mineral resources, including a highlight of 13.2 g/t gold over 4.2
metres at 779 metres depth in hole UDH4479
- Further investigation during the first quarter of the newly
discovered Wu splay structure in the hanging wall of Curie Fault
yielded a highlight of 8.1 g/t over 7.0 metres at 938 metres depth
in the middle of the structure, which has been traced over
approximately 300 metres in length
FINLAND
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe. An underground shaft is expected to be
commissioned in the first half of 2023. Exploration
activities continue to expand the mineral reserves and mineral
resources at the Kittila mine. Near mine exploration remains
the main focus as the deposit remains open at depth and
laterally.
Kittila – Achieves Second Highest Quarterly Gold Production;
Expansion Projects Progressing Well in Commissioning Phase
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
496
|
|
461
|
Tonnes of ore milled
per day
|
|
5,511
|
|
5,122
|
Gold grade
(g/t)
|
|
4.73
|
|
3.6
|
Gold production
(ounces)
|
|
63,692
|
|
45,508
|
Production costs per
tonne (EUR)
|
|
€
98
|
€
|
95
|
Minesite costs per
tonne (EUR)
|
|
€
98
|
€
|
90
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
837
|
$
|
1,087
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
806
|
$
|
1,039
|
Gold production in the first quarter of 2023 increased when
compared to the prior-year period as a result of higher gold grades
and higher mill throughput. Gold grades were significantly
lower in the first quarter of 2022 as a result of delays in
reaching higher grade stopes in the Roura Zone due to unfavourable
ground conditions.
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily due to
higher mill costs resulting from higher unit costs for electricity
and reagents, partially offset by the timing of unsold inventory.
Production costs per ounce in the first quarter of 2023
decreased when compared to the prior-year period due to higher gold
grades and the timing of unsold inventory, partially offset by the
reasons that resulted in higher production costs per tonne.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period primarily due to higher mill
costs resulting from higher unit costs for electricity and
reagents. Total cash costs per ounce in the first quarter of
2023 decreased when compared to the prior-year period due to higher
gold grades and a weaker Euro against the U.S. dollar, partially
offset by the reasons that resulted in higher minesite costs per
tonne.
Operational Highlights
- In the first quarter of 2023, Kittila achieved its second
highest quarterly gold production supported by higher than expected
gold grades, record quarterly underground production and good mill
throughput
- In the first quarter of 2023, electricity spot prices continued
to remain almost double the typical electricity price despite the
commissioning of a nuclear power plant in Finland during the quarter. The long-term
impact of the new nuclear power plant on the Company's electricity
expenses is unknown. In general, inflation in Finland continues to remain more challenging
than in the Company's other operating regions
- At the end of the first quarter of 2023, the Company signed an
agreement for clean electricity which ensures that 100% of the
electricity consumed at the minesite is produced by wind or nuclear
power. At an approximate additional annual cost of less than
150,000 Euros, Kittila is taking a
step towards reducing greenhouse gas emissions and combating
climate change
- The Company expects to host the Supreme Administrative Court of
Finland (the "SAC") for a site
visit in the second quarter of 2023 as part of the review of the
permit limitation (described below). The Company expects a final
decision from the SAC in the second half of 2023. Until then, the
Company continues to rely on the current mining permit of 1.6 Mtpa
while maintaining operational flexibility to reach the 2.0 Mtpa
volume in the event of a positive decision by the SAC
Project Highlights
- Initial rock hoisting from the shaft commenced at the end of
the first quarter of 2023. The focus for the second quarter will be
on ramping up the hoist capacity with performance test trials and
the service hoist commissioning. The shaft project is expected to
be completed in the third quarter of 2023
- The nitrogen removal plant was commissioned in the first
quarter of 2023 and is performing well. Total nitrogen reduction is
close to 80% and ahead of expectations and the team will now focus
on process optimization
- The main underground level is progressing well, with civil
works and installations advancing according to plan. The final work
and handover to the operational team is underway, with the project
expected to be completed by the end of the second quarter of
2023
Exploration Highlights
- Exploration drilling during the first quarter of 2023 at
Kittila totaled 32 holes (8,962 metres) and targeted the northern
and southern portions of the deposit at approximately 1.0 kilometre
depth, including areas to the north beyond the current mineral
resources. Conversion drilling during the first quarter at Kittila
totaled 12 holes (4,038 metres) and targeted the Main and Sisar
zones in the Suuri, Roura and Rimpi areas
- To the north, highlights in the Main Zone include exploration
hole RIE23-604, which intersected 5.0 g/t gold over 9.2 metres at
1,141 metres depth and conversion hole VUG22-534, which intersected
4.2 g/t gold over 8.3 metres at 1,145 metres depth, with the two
intercepts extending the Main Zone by approximately 130 metres
down-plunge and further north in the Rimpi area. Approximately 500
metres to the south, exploration hole RIE22-609 intersected 5.0 g/t
gold over 4.9 metres at 1,199 metres depth, extending the Sisar
Zone mineralization down-plunge in the Rimpi area
- To the south, exploration hole SUU22-622 intersected 5.6 g/t
gold over 6.4 metres at 1,023 metres depth, confirming gold
mineralization in the southern portion of the Sisar Zone within the
Suuri area and demonstrating the good potential for further
exploration success at shallow depths in the Suuri area
- Selected recent drill results from Kittila are set out in the
table in the Appendix and in the composite longitudinal section
below
[Kittila Mine – Composite Longitudinal Section]
Permitting
- In 2020, the Regional State Administrative Agency of
Northern Finland granted the
mine's owner, Agnico Eagle Finland Oy ("Agnico Finland"),
environmental and water permits that allowed Agnico Finland to
enlarge the second carbon-in-leach ("CIL2") tailings storage
facility, expand the operations of the Kittila mine to 2.0 Mtpa and
build a new discharge waterline. The permits were subsequently
appealed by a third party to the Vaasa Administrative Court in
Finland. The appeals were granted,
in part, in July 2022, with the
result that the permits were returned for reconsideration by the
Regional State Administrative Agency of Northern Finland
- In August 2022, the Company
appealed the decisions of the Vaasa Administrative Court to the
Supreme Administrative Court of Finland (the "SAC") and requested that the SAC
restore the permits through an interim decision pending the
ultimate result of Agnico Finland's appeal
- On November 1, 2022, the SAC
issued an interim decision upholding the initial CIL2 tailings
storage facility permit and restoring nitrogen emission level
permits in 2022, ensuring the Company's environmental compliance
with regards to nitrogen emissions. However, the SAC interim
decision did not uphold the expansion of the mine to 2.0 Mtpa and
the Vaasa Administrative Court decision is valid until a final
decision is issued by the SAC
- The Company expects to host the SAC for a site visit in the
second quarter of 2023 as part of the review of the permit
limitation. The Company expects a final decision from the SAC in
the second half of 2023. Until then, the Company continues to rely
on the current mining permit of 1.6 Mtpa while maintaining
operational flexibility to reach the 2.0 Mtpa volume in the event
of a positive decision by the SAC
- If the SAC does not reinstate Agnico Finland's right to operate
at, or close to, 2.0 Mtpa, the Company intends to submit an updated
permit application for 2.0 Mtpa output level or higher
MEXICO
Agnico Eagle's Mexican operations have been a solid source of
precious metals production (gold and silver) with strong free cash
flow generation since 2009.
Pinos Altos – Production and
Development In Line With Plan; Exploration Testing the Area Between
the Santo Nino and Oberon de Weber
Deposits
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
364
|
|
384
|
Tonnes of ore processed
per day
|
|
4,044
|
|
4,267
|
Gold grade
(g/t)
|
|
2.16
|
|
2.14
|
Gold production
(ounces)
|
|
24,134
|
|
25,170
|
Production costs per
tonne
|
$
|
90
|
$
|
85
|
Minesite costs per
tonne
|
$
|
90
|
$
|
87
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,364
|
$
|
1,293
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,116
|
$
|
1,078
|
Gold production in the first quarter of 2023 decreased when
compared to the prior-year period primarily due to lower throughput
levels resulting from lower underground productivity related
to lower stope availability at the Santo Niño and Cerro Colorado zones.
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily due to
higher mining and milling costs, partially offset by higher
deferred stripping and a favourable stockpile adjustment.
Production costs per ounce in the first quarter of 2023 increased
when compared to the prior-year period due to the reasons set out
above for the increase in production costs per tonne described
above.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period primarily due to the same
reasons for the increase in the production costs per tonne.
Total cash costs per ounce in the first quarter of 2023 increased
when compared to the prior-year period due to the reasons set out
for the higher production costs per tonne above and lower
by-product revenues from lower silver sales, partially offset by
higher gold grades.
Operational Highlights
- In the third quarter of 2022, the company modified the mining
sequence and rate to reflect current conditions and developed a
plan to enhance mining recovery and minimize dilution. These
measures led to an improvement in development and production rates
throughout the fourth quarter of 2022 and first quarter of 2023,
resulting in the underground mine exceeding targets for ore, waste
and development metres during the first quarter of 2023
- In the Reyna de Plata open pit, both ore production and gold
grades exceeded targets in the first quarter of 2023
Project Highlights
- In the fourth quarter of 2022, pre-construction activities at
the Cubiro deposit were paused. Additional exploration and
definition drilling is planned for 2023 to better define the high
grade ore shoot for future production and optimize the mine design
and sequence. Initial production is expected in the second half of
2024. Once production commences, Cubiro is expected to provide
additional production flexibility to the Pinos Altos operations
Exploration Highlights
- In addition to the resumption of exploration drilling at
Cubiro, the exploration program at Pinos
Altos in 2023 is focused on testing the area between the
Santo Nino and Oberon de Weber
deposits as well as the depth potential of the Cerro Colorado and Reyna East deposits and other targets on the
property
La India – Production in
Line With Targets in the First Quarter of 2023; Work Underway to
Reduce Cyanide Consumption and Improve Leach Kinetics
The 100% owned La India mine in Sonora, Mexico, located approximately 70
kilometres northwest of the Company's Pinos Altos mine, achieved commercial
production in February 2014.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
660
|
|
1,563
|
Tonnes of ore processed
per day
|
|
7,333
|
|
17,367
|
Gold grade
(g/t)
|
|
0.68
|
|
0.57
|
Gold production
(ounces)
|
|
16,321
|
|
21,702
|
Production costs per
tonne
|
$
|
30
|
$
|
11
|
Minesite costs per
tonne
|
$
|
33
|
$
|
12
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,231
|
$
|
817
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,308
|
$
|
820
|
Gold production in the first quarter of 2023 decreased when
compared to the prior-year period as a result of fewer tonnes
placed on the heap leach, partially offset by higher recovery.
Production costs per tonne in the first quarter of 2023
increased when compared to the prior-year period primarily due to
higher heap leach production costs resulting from fewer tonnes
placed on the heap leach and higher open pit production costs
resulting from a higher strip ratio with the transition from the
Main pit to the El Realito
pit. Production costs per ounce in the first quarter of 2023
increased when compared to the prior-year period due to the same
reasons outlined above, partially offset by higher gold grades.
Minesite costs per tonne in the first quarter of 2023 increased
when compared to the prior-year period primarily due to the reasons
described above. Total cash costs per ounce in the first
quarter of 2023 increased when compared to the prior-year period
due to the same reasons as the higher production costs per
ounce.
Operational Highlights
- The first quarter of 2023 saw good production rates in both ore
and waste tonnes, with grades higher than target
- Changes are underway to the heap leach bench heights in order
to reduce cyanide consumption and potentially improve leach
kinetics
- Open pit mining and crusher operations are expected to be
concluded in the fourth quarter of 2023
Exploration Highlights
- Investigation for additional sulphide mineralization is ongoing
with a plan to drill approximately 4,000 metres in 2023 at the
Chipriona polymetallic sulphide deposit to test potential lateral
extensions and parallel structures at open pit depths
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company, producing
precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of
high-quality exploration and development projects in these
countries as well as in the United States. Agnico Eagle is a
partner of choice within the mining industry, recognized globally
for its leading environmental, social and governance
practices. The Company was founded in 1957 and has
consistently created value for its shareholders, declaring a cash
dividend every year since 1983.
Further Information
For further information regarding Agnico Eagle, contact Investor
Relations at investor.relations@agnicoeagle.com or call (416)
947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance
measures, including "total cash costs per ounce", "all-in
sustaining costs per ounce", "minesite costs per tonne", "net
debt", "adjusted net income", "adjusted net income per share",
"sustaining capital expenditures", "development capital
expenditures" and "operating margin" that are not standardized
measures under IFRS. These measures may not be comparable to
similar measures reported by other gold mining companies. For
a reconciliation of these measures to the most directly comparable
financial information reported in the consolidated financial
statements prepared in accordance with IFRS, other than adjusted
net income, see "Reconciliation of Non-GAAP Financial Performance
Measures" below.
The total cash costs per ounce of gold produced also referred to
as "total cash cost per ounce" is reported on both a by-product
basis (deducting by-product metal revenues from production costs)
and co-product basis (without deducting by-product metal
revenues). The total cash costs per ounce of gold produced on
a by-product basis is calculated by adjusting production costs as
recorded in the consolidated statements of income (loss) for
by-product revenues, inventory production costs, the impact of
purchase price allocation in connection with the Merger to
inventory accounting, realized gains and losses on hedges of
production costs, operational care and maintenance costs due to
COVID-19, production costs associated with retrospective
adjustments from the application of the IAS 16 amendments (which,
among other things, clarified that pre-commercial revenues and
production costs could not be recognized in the cost of property,
plant and equipment, but must be recognized as income) and other
adjustments, which include the costs associated with a 5% in-kind
royalty paid in respect of the Canadian Malartic mine, a 2% in-kind
royalty paid in respect of the Detour Lake mine, a 1.5% in-kind
royalty paid in respect of the Macassa mine, as well as smelting,
refining and marketing charges and then dividing by the number of
ounces of gold produced. Certain line items such as
operational care and maintenance costs due to COVID-19 and realized
gains and losses on hedges of production costs were previously
classified as "other adjustments" and are now disclosed separately
to provide additional detail on the reconciliation, allowing
investors to better understand the impacts of such events on the
cash operating costs per ounce and minesite costs per tonne.
In addition, given the extraordinary nature of the fair value
adjustment on inventory related to the Merger and the use of the
total cash costs per ounce measure to reflect the cash generating
capabilities of the Company's operations, the calculation of total
cash costs per ounce for the Detour, Macassa and Fosterville mines have been adjusted for this
purchase price allocation. The total cash costs per ounce of
gold produced on a co-product basis is calculated in the same
manner as the total cash costs per ounce of gold produced on a
by-product basis, except that no adjustment is made for by-product
metal revenues. Accordingly, the calculation of total cash
costs per ounce of gold produced on a co-product basis does not
reflect a reduction in production costs or smelting, refining and
marketing charges associated with the production and sale of
by-product metals. The total cash costs per ounce of gold
produced is intended to provide information about the
cash-generating capabilities of the Company's mining
operations. Management also uses these measures to, and
believes they are helpful to investors so investors can, understand
and monitor the performance of the Company's mining
operations. The Company believes that total cash costs per
ounce is useful to help investors understand the costs associated
with producing gold and the economics of gold mining. As
market prices for gold are quoted on a per ounce basis, using the
total cash costs per ounce of gold produced on a by-product basis
measure allows management and investors to assess a mine's
cash-generating capabilities at various gold prices.
Management is aware, and investors should note, that these per
ounce measures of performance can be affected by fluctuations in
exchange rates and, in the case of total cash costs per ounce of
gold produced on a by-product basis, by-product metal prices.
Management compensates for these inherent limitations by using, and
investors should also consider, these measures in conjunction with
minesite costs per tonne as well as other data prepared in
accordance with IFRS. Management also performs sensitivity
analysis in order to quantify the effects of fluctuating metal
prices and exchange rates. Investors should note that total
cash costs per ounce are not reflective of all cash expenditures as
they do not include income tax payments, interest costs or dividend
payments. These measures also do not include depreciation or
amortization.
Agnico Eagle's primary business is gold production and the focus
of its current operations and future development is on maximizing
returns from gold production, with other metal production being
incidental to the gold production process. Accordingly, all
metals other than gold are considered by-products.
In this press release, unless otherwise indicated, total cash
costs per ounce of gold produced is reported on a by-product
basis. Total cash costs per ounce of gold produced is
reported on a by-product basis because (i) the majority of the
Company's revenues are from gold, (ii) the Company mines ore, which
contains gold, silver, zinc, copper and other metals, (iii) it is
not possible to specifically assign all costs to revenues from the
gold, silver, zinc, copper and other metals the Company produces,
(iv) it is a method used by management and the Board of Directors
to monitor operations, and (v) many other gold producers disclose
similar measures on a by-product rather than a co-product
basis. Investors should also consider these measures in
conjunction with other data prepared in accordance with IFRS.
In this press release, unless otherwise indicated, all-in
sustaining costs per ounce of gold produced is reported on a
by-product basis. All-in sustaining costs per ounce of gold
produced (also referred to as "all-in sustaining costs per ounce")
on a by-product basis is calculated as the aggregate of total cash
costs on a by-product basis, sustaining capital expenditures
(including capitalized exploration), general and administrative
expenses (including stock options), lease payments related to
sustaining assets and reclamation expenses, and then dividing by
the number of ounces of gold produced. These additional costs
reflect the additional expenditures that are required to be made to
maintain current production levels. The AISC per ounce of
gold produced on a co-product basis is calculated in the same
manner as the AISC per ounce of gold produced on a by-product
basis, except that the total cash costs on a co-product basis are
used, meaning no adjustment is made for by-product metal
revenues. AISC per ounce seeks to reflect total sustaining
expenditures of producing and selling an ounce of gold while
maintaining current operations. Management is aware, and
investors should note, that these per ounce measures of performance
can be affected by fluctuations in foreign exchange rates and, in
the case of total cash costs per ounce and AISC of gold produced on
a by-product basis, by-product metal prices. Management
compensates for these inherent limitations by using these measures
in conjunction with minesite costs per tonne as well as other data
prepared in accordance with IFRS. Investors should note that
AISC per ounce is not reflective of all cash expenditures as it
does not include income tax payments, interest costs or dividend
payments. This measure also does not include depreciation or
amortization.
The World Gold Council ("WGC") is a non-regulatory market
development organization for the gold industry. Although the
WGC is not a mining industry regulatory organization, it has worked
closely with its member companies to develop relevant non-GAAP
measures. The Company follows the guidance on all-in
sustaining costs released by the WGC in November 2018.
Adoption of the AISC metric is voluntary and, notwithstanding the
Company's adoption of the WGC's guidance, AISC per ounce of gold
produced reported by the Company may not be comparable to data
reported by other gold mining companies. The Company believes
that this measure provides helpful information about operating
performance. However, this non-GAAP measure should be
considered together with other data prepared in accordance with
IFRS as it is not necessarily indicative of operating costs or cash
flow measures prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income (loss)
for inventory production costs, operational care and maintenance
costs due to COVID-19, and other adjustments, and then dividing by
tonnage of ore processed. As the total cash costs per ounce
of gold produced can be affected by fluctuations in by–product
metal prices and foreign exchange rates, management believes, and
investors should note, that minesite costs per tonne is useful to
investors in providing additional information regarding the
performance of mining operations, eliminating the impact of varying
production levels. Management also uses this measure to
determine the economic viability of mining blocks. As each
mining block is evaluated based on the net realizable value of each
tonne mined, in order to be economically viable the estimated
revenue on a per tonne basis must be in excess of the minesite
costs per tonne. Management is aware, and investors should
note, that this per tonne measure of performance can be affected by
fluctuations in processing levels. This inherent limitation
may be partially mitigated by using this measure in conjunction
with production costs prepared in accordance with IFRS.
Net debt is calculated by adjusting the total of the current
portion of long-term debt and non-current long-term debt as
recorded on the consolidated balance sheet for deferred financing
costs and cash and cash equivalents. Management believes the
measure of net debt is useful to help investors to determine the
Company's overall debt position and to evaluate future debt
capacity of the Company.
Adjusted net income and adjusted net income per share are
calculated by adjusting the net income as recorded in the
consolidated statements of income (loss) for the effects of certain
non-recurring, unusual and other items that the Company believes
are not reflective of the Company's underlying performance for the
reporting period. Adjusted net income is calculated by adjusting
net income for foreign currency translation gains or losses,
realized and unrealized gains or losses on derivative financial
instruments, impairment loss charges and reversals, environmental
remediation, severance and transaction costs related to
acquisitions, purchase price allocations to inventory, income and
mining taxes adjustments as well as other items (which includes
changes in estimates of asset retirement obligations at closed
sites and gains and losses on the disposal of assets,
self-insurance losses, multi-year donations and integration costs).
Adjusted net income per share is calculated by dividing adjusted
net income by the number of shares outstanding on a basic and
diluted basis. The Company believes that these generally accepted
industry measures are useful in that they allow for the evaluation
of the results of continuing operations and in making comparisons
between periods. Adjusted net income and adjusted net income
per share are intended to provide investors with information about
the Company's continuing income generating capabilities from its
core mining business, excluding the above adjustments, which are
not reflective of operational performance. Management uses this
measure to, and believes it is helpful to investors so they can,
understand and monitor for the operating performance of the Company
in conjunction with other data prepared in accordance with
IFRS.
Operating margin is calculated by deducting production costs
from revenue from mining operations. In order to reconcile
operating margin to net income as recorded in the consolidated
financial statements, the Company adds the following items to the
operating margin: income and mining taxes expense; other expenses
(income); care and maintenance expenses; foreign currency
translation (gain) loss; environmental remediation costs; gain
(loss) on derivative financial instruments; finance costs; general
and administrative expenses; amortization of property, plant and
mine development; exploration and corporate development expenses;
and impairment losses (reversals). The Company believes that
operating margin is a useful measure that represents the operating
performance of its individual mines associated with the ongoing
production and sale of gold and by-product metals without
allocating Company-wide overhead, including exploration and
corporate development expenses, amortization of property, plant and
mine development, general and administrative expenses, finance
costs, gain and losses on derivative financial instruments,
environmental remediation costs, foreign currency translation gains
and losses, other expenses and income and mining tax
expenses. Management uses this measure internally to plan and
forecast future operating results. This measure is intended
to provide investors with additional information about the
Company's underlying operating results and should be evaluated in
conjunction with other data prepared in accordance with IFRS.
Capital expenditures are classified into sustaining capital
expenditures and development capital expenditures. Sustaining
capital expenditures are expenditures incurred during the
production phase to sustain and maintain the existing assets so
they can achieve constant expected levels of production from which
the Company will derive economic benefits. Sustaining capital
expenditures include expenditure for assets to retain their
existing productive capacity as well as to enhance performance and
reliability of the operations. Development capital
expenditures represents the spending at new projects and/or
expenditure at existing operations that is undertaken with the
intention to increase production levels or mine life above the
current plans. Management uses these measures in the capital
allocation process and to assess the effectiveness of its
investments. Management believes these measures are useful so
investors can assess the purpose and effectiveness of the capital
expenditures split between sustaining and development in each
reporting period. The classification between sustaining and
development capital expenditures does not have a standardized
definition in accordance with IFRS and other companies may classify
expenditures in a different manner.
This news release also contains information as to estimated
future total cash costs per ounce, AISC per ounce and minesite
costs per tonne. The estimates are based upon the total cash
costs per ounce, AISC per ounce and minesite costs per tonne that
the Company expects to incur to mine gold at its mines and projects
and, consistent with the reconciliation of these actual costs
referred to above, do not include production costs attributable to
accretion expense and other asset retirement costs, which will vary
over time as each project is developed and mined. It is
therefore not practicable to reconcile these forward-looking
non-GAAP financial measures to the most comparable IFRS
measure.
Forward-Looking Statements
The information in this news release has been prepared as at
April 27, 2023. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". All statements, other than
statements of historical fact, that address circumstances, events,
activities or developments that could, or may or will occur are
forward looking statements. When used in this news release,
the words "aim", "anticipate", "could", "estimate", "expect",
"forecast", "future", "plan", "possible", "potential", "target",
"will" and similar expressions are intended to identify
forward-looking statements. Such statements include, without
limitation: the Company's forward-looking guidance, including metal
production, estimated ore grades, recovery rates, project
timelines, drilling results, life of mine estimates, total cash
costs per ounce, AISC per ounce, minesite costs per tonne, other
expenses and cash flows; statements relating to the potential for
additional gold production at Kittila, Fosterville, the AK deposit and Upper Beaver;
statements relating to the expected outcomes and benefits of the
Merger and the Yamana Transaction, including synergies arising
therefrom and their expected quantum and timing; statements
relating to the expected benefits of the San Nicolás transaction;
the estimated timing and conclusions of technical studies and
evaluations; the methods by which ore will be extracted or
processed; statements concerning the Company's expansion plans at
Detour, Kittila, Meliadine Phase 2, the Amaruq underground project
and the Odyssey project, including the timing, funding, completion
and commissioning thereof and production therefrom; statements
about the Company's plans at the Hope Bay project; statements about
the Company's plans at the Wasamac project; statements concerning
other expansion projects, recovery rates, mill throughput,
optimization and projected exploration, including costs and other
estimates upon which such projections are based; statements
regarding timing and amounts of capital expenditures, other
expenditures and other cash needs, and expectations as to the
funding thereof; estimates of future mineral reserves, mineral
resources, mineral production and sales; the projected development
of certain ore deposits, including estimates of exploration,
development and production and other capital costs and estimates of
the timing of such exploration, development and production or
decisions with respect to such exploration, development and
production; statements regarding anticipated cost inflation and its
effect on the Company's costs and results; estimates of mineral
reserves and mineral resources and the effect of drill results on
future mineral reserves and mineral resources; statements regarding
the Company's ability to obtain the necessary permits and
authorizations in connection with its proposed or current
exploration, development and mining operations and the anticipated
timing thereof; statements regarding operations at and expansion of
the Kitilla mine following the decision of the Finish courts and
administrative bodies; statements regarding future exploration; the
anticipated timing of events with respect to the Company's mine
sites; statements regarding the sufficiency of the Company's cash
resources; statements regarding the Company's plans with respect to
hedging and the effectiveness of its hedging strategies; statements
regarding future activity with respect to the Company's unsecured
revolving bank credit facility and the draw down on its Term Credit
Facility; statements regarding the NCIB and the anticipated renewal
thereof; statements regarding future dividend amounts and payment
dates; statements regarding anticipated trends with respect to the
Company's operations, exploration and the funding thereof; and
statements regarding the impact of the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19 on the Company's
future operations, including its employees and overall
business. Such statements reflect the Company's views as at
the date of this news release and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be
placed on such statements. Forward-looking statements are
necessarily based upon a number of factors and assumptions that,
while considered reasonable by Agnico Eagle as of the date of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
material factors and assumptions used in the preparation of the
forward looking statements contained herein, which may prove to be
incorrect, include, but are not limited to, the assumptions set
forth herein and in management's discussion and analysis
("MD&A") and the Company's Annual Information Form ("AIF") for
the year ended December 31, 2022
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2022 ("Form 40-F") filed with the
U.S. Securities and Exchange Commission (the "SEC") as well as:
that there are no significant disruptions affecting operations;
that production, permitting, development, expansion and the ramp-up
of operations at each of Agnico Eagle's properties proceeds on a
basis consistent with current expectations and plans; that the
environmental and water permits granted for the Kittila mine are
restored by the SAC in its final decision and the decisions of the
Finish courts and administrative bodies have no material impact on
the Kittila mine's operations; that the relevant metal prices,
foreign exchange rates and prices for key mining and construction
inputs (including labour and electricity) will be consistent with
Agnico Eagle's expectations; the ability to realize the anticipated
benefits of the Merger or implementing the business plan for the
combined company, including as a result of difficulty in
integrating the businesses of the companies involved; the ability
to realize synergies from the Merger and Yamana Transaction and
cost savings at the times, and to the extent, anticipated; that
Agnico Eagle's current estimates of mineral reserves, mineral
resources, mineral grades and metal recovery are accurate; that
there are no material delays in the timing for completion of
ongoing growth projects; that seismic activity at the Company's
operations at LaRonde, Goldex and other properties is as expected
by the Company and that the Company's efforts to mitigate its
effect on mining operations are successful; that the Company's
current plans to optimize production are successful; that there are
no material variations in the current tax and regulatory
environment; that governments, the Company or others do not take
additional measures in response to the COVID-19 pandemic or
otherwise that, individually or in the aggregate, materially affect
the Company's ability to operate its business; that cautionary
measures taken in connection with the COVID-19 pandemic do not
affect productivity; and that measures taken relating to, or other
effects of, the COVID-19 pandemic do not affect the Company's
ability to obtain necessary supplies and deliver them to its mine
sites. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks
include, but are not limited to: the ability to realize the
anticipated benefits of the Merger or implementing the business
plan for Agnico Eagle following the Merger, including as a result
of a delay or difficulty in integrating the businesses of the
companies involved; the ability to realize the anticipated benefits
of the Yamana Transaction; the ability to realize the anticipated
benefits of the San Nicolás transaction; the volatility of prices
of gold and other metals; uncertainty of mineral reserves, mineral
resources, mineral grades and mineral recovery estimates;
uncertainty of future production, project development, capital
expenditures and other costs; foreign exchange rate fluctuations;
inflationary pressures; financing of additional capital
requirements; cost of exploration and development programs; seismic
activity at the Company's operations, including the LaRonde complex
and Goldex mine; mining risks; community protests, including by
First Nations groups; risks associated with foreign operations;
governmental and environmental regulation; the volatility of the
Company's stock price; risks associated with the Company's
currency, fuel and by-product metal derivative strategies; the
extent and manner to which COVID-19, and measures taken by
governments, the Company or others to attempt to reduce the spread
of COVID-19 may affect the Company, whether directly or through
effects on employee health, workforce productivity and availability
(including the ability to transport personnel to fly-in/fly-out
camps), travel restrictions, contractor availability, supply
availability, ability to sell or deliver gold dore bars or
concentrate, availability of insurance and the cost thereof, the
ability to procure inputs required for the Company's operations and
projects or other aspects of the Company's business; and
uncertainties with respect to the effect on the global economy
associated with the COVID-19 pandemic and measures taken to reduce
the spread of COVID-19, any of which could negatively affect
financial markets, including the trading price of the Company's
shares and the price of gold, and could adversely affect the
Company's ability to raise capital. For a more detailed
discussion of such risks and other factors that may affect the
Company's ability to achieve the expectations set forth in the
forward-looking statements contained in this news release, see the
AIF and MD&A filed on SEDAR at www.sedar.com and included in
the Form 40-F filed on EDGAR at www.sec.gov, as well as the
Company's other filings with the Canadian securities regulators and
the SEC. Other than as required by law, the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101").
Effective February 25, 2019, the
SEC's disclosure requirements and policies for mining properties
were amended to more closely align with current industry and global
regulatory practices and standards, including NI 43-101.
However, Canadian issuers that report in the United States using the
Multijurisdictional Disclosure System ("MJDS"), such as the
Company, may still use NI 43-101 rather than the SEC disclosure
requirements when using the SEC's MJDS registration statement and
annual report forms. Accordingly, mineral reserve and mineral
resource information contained in this news release may not be
comparable to similar information disclosed by U.S. companies.
Investors are cautioned that while the SEC now recognizes
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", investors should not assume that any
part or all of the mineral deposits in these categories will ever
be converted into a higher category of mineral resources or into
mineral reserves. These terms have a great amount of
uncertainty as to their economic and legal feasibility. Under
Canadian regulations, estimates of inferred mineral resources may
not form the basis of feasibility or pre-feasibility studies,
except in limited circumstances. Investors are cautioned
not to assume that any "measured mineral resources", "indicated
mineral resources", or "inferred mineral resources" that the
Company reports in this news release are or will be economically or
legally mineable.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all
of an inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in this
news release are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals
contained in mineral reserves in its calculation of contained
ounces and mineral reserves are not reported as a subset of mineral
resources.
Scientific and Technical Information
The scientific and technical information contained in this news
release relating to Nunavut,
Quebec and Finland operations has been approved by
Dominique Girard, Eng., Executive Vice President & Chief
Operating Officer – Nunavut,
Quebec & Europe; relating to Ontario, Australia and Mexico operations has been approved by
Natasha Vaz, Executive Vice
President & Chief Operating Officer – Ontario, Australia & Mexico; relating to exploration has been
approved by Guy Gosselin, Eng. and P.Geo., Executive Vice
President, Exploration; and relating to mineral reserves and
mineral resources has been approved by Dyane Duquette, P.Geo., Vice President, Mineral
Resources Management, each of whom is a "Qualified Person" for the
purposes of NI 43-101.
Assumptions used for the December 31,
2022 mineral reserve and mineral resource estimates reported
by the Company
Metal Price for
Mineral Reserve Estimation1
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
$1,300
|
$18
|
$3.00
|
$1.00
|
1
Exceptions: US$1,350 per ounce of gold used for Hope Bay
and Hammond Reef; US$1,250 per ounce of gold used for Akasaba West;
US$1,200 per ounce of gold and US$2.75 per pound of copper used for
Upper Beaver
|
|
|
Mines /
Projects
|
Metal Price for
Mineral Resource Estimation5
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
Operating mines held by
Kirkland Lake Gold
before the Merger1
|
$1,500
|
-
|
-
|
-
|
Operating mines held by
Agnico Eagle Mines
before the Merger2
|
$1,625
|
$22.50
|
$3.75
|
$1.25
|
Pipeline
projects
|
$1,6883
|
$25.004
|
$3.75
|
$1.25
|
1 Detour,
Macassa, Fosterville, Northern Territory
|
2
LaRonde, LZ5, Goldex, Amaruq, Meliadine, Kittila, La India,
Pinos Altos
|
3 Hope Bay, Anoki-McBean, Hammond
Reef, Chipriona, Tarachi, Santa Gertrudis
|
4
Chipriona, Santa Gertrudis
|
5
Exceptions: US$1,667 per ounce of gold used for Canadian
Malartic, Odyssey, Akasaba West, Upper Canada, El Barqueno Gold;
US$1,533 per ounce of gold used for Barsele; US$500 per ounce of
gold used for Aquarius. US$22.67 per ounce of silver El Barqueno
Silver
|
Exchange
rates1
|
C$ per
US$1.00
|
Mexican peso per
US$1.00
|
AUD per
US$1.00
|
US$ per
€1.00
|
$1.30
|
MXP18.00
|
AUD1.36
|
EUR1.10
|
1
Exceptions: exchange rate of CAD$1.25 per US$1.00 used for Upper
Beaver, Upper Canada and Holt complex, Detour
Zone 58N; CAD$1.11 per US$1.00 used for Aquarius; US$1.00 per EUR
$1.15 used for Barsele
|
The above metal price assumptions are below the three-year
historic gold and silver price averages (from January 1, 2020 to December 31, 2022) of approximately $1,790 per ounce and $22.48 per ounce, respectively.
Mineral reserves are reported exclusive of mineral
resources. Tonnage amounts and contained metal amounts set
out in this table have been rounded to the nearest thousand, so may
not aggregate to equal column totals. Mineral reserves are
in-situ, taking into account all mining recoveries, before
mill or heap leach recoveries. Underground mineral reserves
and measured and indicated mineral resources are reported within
mineable shapes and include internal and external dilution.
Inferred mineral resources are reported within mineable shapes and
include internal dilution. Mineable shape optimization
parameters may differ for mineral reserves and mineral
reserves.
The mineral reserves and mineral resources tonnages reported for
silver, copper and zinc are a subset of the mineral reserves and
mineral resources tonnages for gold. The Company's economic
parameters follow the method accepted by the SEC by setting the
maximum price allowed to be no more than the lesser of the
three–year moving average and current spot price, which is a common
industry standard. Given the current commodity price
environment, Agnico Eagle continues to use more conservative gold
and silver prices.
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors, together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the Company's material
mineral projects as at March 31,
2023, including information regarding data verification, key
assumptions, parameters and methods used to estimate mineral
reserves and mineral resources and the risks that could materially
affect the development of the mineral reserves and mineral
resources required by sections 3.2 and 3.3 and paragraphs 3.4(a),
(c) and (d) of NI 43-101 can be found in the Company's AIF and
MD&A filed on SEDAR each of which forms a part of the Company's
Form 40-F filed with the SEC on EDGAR and in the following
technical reports filed on SEDAR in respect of the Company's
material mineral properties: NI 43-101 Technical Report of the
LaRonde complex in Québec, Canada (March 24, 2023); NI 43-101
Technical Report Canadian Malartic Mine, Québec, Canada (March 25,
2021); Technical Report on the Mineral Resources and Mineral
Reserves at Meadowbank Gold complex including the Amaruq Satellite
Mine Development, Nunavut, Canada as at December 31, 2017 (February
14, 2018); the Updated Technical Report on the Meliadine Gold
Project, Nunavut, Canada (February 11, 2015); the Detour Lake
Operation, Ontario, Canada NI 43-101 Technical Report as at July
26, 2021 (October 15, 2021); and the Updated NI 43-101 Technical
Report Fosterville Gold Mine in the State of Victoria, Australia as
at December 31, 2018 (April 1, 2019).
APPENDIX – Recent selected exploration drill results from
LaRonde complex, Goldex, Wasamac, Detour Lake, Macassa, Meliadine,
Amaruq, Hope Bay, Fosterville and
Kittila
LZ5 mine at LaRonde complex
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below surface
(metres)
|
Estimated true
width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
BZ-2022-028
|
986.3
|
1,001.7
|
840
|
10.1
|
3.7
|
3.7
|
BZ-2022-032
|
844.7
|
885.0
|
671
|
30.0
|
3.0
|
3.0
|
**Results from LZ5 mine
use a capping factor of 30 g/t gold.
|
South Zone and W Zone at Goldex
Drill hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade
(g/t)
(capped)*
|
GD128-083
|
South Zone - Sector
3
|
133.0
|
145.5
|
1,267
|
10.5
|
4.7
|
4.7
|
GD128-086
|
South Zone - Sector
3
|
97.5
|
107.0
|
1,233
|
5.3
|
4.1
|
4.1
|
and
|
South Zone - Sector
3
|
123.0
|
133.0
|
1,225
|
5.5
|
4.4
|
4.4
|
GD128-109
|
South Zone - Sector
3
|
75.0
|
91.0
|
1,274
|
12.0
|
6.0
|
6.0
|
GD128-111
|
South Zone - Sector
3
|
77.8
|
98.0
|
1,246
|
15.5
|
13.9
|
9.8
|
GD27-053
|
W Zone
|
426.0
|
475.5
|
480
|
35.0
|
1.8
|
1.8
|
* Results from South
Zone and W Zone at Goldex mine use capping factors of 60 g/t and 50
g/t gold, respectively.
|
Wasamac
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
WS22-589
|
517.5
|
577.1
|
463
|
54.1
|
5.1
|
4.7
|
* Results from Wasamac
project use a capping factor of 30 g/t gold.
|
Macassa and AK deposit
Deposit /
Zone
|
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold
grade
(g/t)
(uncapped)
|
Gold
grade
(g/t)
(capped)*
|
Macassa - SMC
East
|
58-794
|
220.4
|
222.4
|
1,695
|
1.9
|
54.4
|
26.6
|
Macassa - Lower Main
Break
|
53-4699
|
566.0
|
568.5
|
2,039
|
1.9
|
14.6
|
14.6
|
AK deposit
|
KLAK-169
|
117.1
|
126.2
|
295
|
5.3
|
15.0
|
14.7
|
AK deposit
|
KLAK-171
|
105.5
|
111.9
|
264
|
4.9
|
13.0
|
13.0
|
* Results from Macassa
mine use a capping factor ranging from 68.6 g/t to 445.7 g/t gold
depending on the zone. Results from AK use a capping factor of 70
g/t gold.
|
West Pit and West Pit Extension zones at Detour Lake
Zone
|
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)*
|
West Pit
Extension
|
DLM22-577
|
940.0
|
964.0
|
752
|
22.4
|
2.3
|
|
and
|
983.0
|
992.0
|
777
|
8.4
|
14.1
|
West Pit
Extension
|
DLM22-579
|
928.2
|
1,006.0
|
824
|
68.7
|
0.9
|
|
and
|
1,022.0
|
1,034.0
|
872
|
10.7
|
2.8
|
West Pit
Extension
|
DLM22-580
|
751.0
|
775.2
|
660
|
21.3
|
4.2
|
West Pit
|
DLM23-593W
|
398.0
|
414.0
|
306
|
15.1
|
3.5
|
|
and
|
479.2
|
493.0
|
361
|
13.1
|
3.0
|
|
and
|
684.0
|
700.3
|
495
|
15.8
|
2.5
|
West Pit
|
DLM23-599
|
520.0
|
585.0
|
475
|
57.0
|
1.7
|
|
and
|
632.0
|
661.0
|
550
|
25.6
|
4.8
|
West Pit
|
DLM23-601
|
370.6
|
387.8
|
311
|
15.4
|
4.6
|
|
and
|
482.9
|
494.0
|
395
|
10.1
|
2.8
|
West Pit
|
DLM23-603
|
313.0
|
332.7
|
271
|
17.3
|
3.7
|
|
and
|
371.0
|
382.0
|
314
|
9.7
|
3.0
|
|
and
|
488.0
|
508.0
|
410
|
18.0
|
3.0
|
West Pit
|
DLM23-616
|
599.0
|
625.2
|
439
|
25.3
|
2.9
|
|
and
|
656.0
|
677.0
|
474
|
20.3
|
3.2
|
West Pit
|
DLM23-617
|
349.0
|
384.0
|
309
|
30.4
|
2.9
|
West Pit
|
DLM23-631
|
345.2
|
374.7
|
294
|
26.3
|
3.0
|
|
and
|
561.8
|
593.1
|
450
|
27.5
|
2.6
|
|
including
|
582.8
|
588.3
|
468
|
5.0
|
10.7
|
West Pit
|
DLM23-641
|
527.0
|
559.0
|
424
|
29.6
|
6.7
|
|
including
|
547.0
|
559.0
|
431
|
11.1
|
16.2
|
*Results from Detour
Lake mine are uncapped.
|
Tiriganiaq and Wesmeg deposits at Meliadine
Drill hole
|
Zone / Lode
|
From
(metres)
|
To
(metres
|
Depth of
midpoint
below
surface
(metres)
|
Estimated true
width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
ML425-9740-D5
|
Tiriganiaq -
1015
|
371.1
|
377.2
|
770
|
4.9
|
17.2
|
17.2
|
ML425-9740-D36
|
Tiriganiaq -
1015
|
465.4
|
476.0
|
893
|
8.0
|
7.9
|
7.5
|
ML400-10200-D10
|
Wesmeg - 650
|
258.3
|
265.4
|
532
|
7.0
|
8.9
|
8.9
|
*Results from Meliadine
mine use capping factors of 250 g/t gold for Tiriganiaq Lode 1000
and 40 g/t gold for iron formations at Wesmeg.
|
Whale Tail deposit at Amaruq mine at Meadowbank
Complex
Drill hole
|
From
(metres)
|
To (metres
|
Depth of
midpoint below
surface
(metres)
|
Estimated true
width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
AMQ22-2881
|
239.8
|
244.4
|
177
|
4.2
|
7.6
|
7.6
|
AMQ22-2895
|
201.8
|
214
|
157
|
10
|
3.8
|
3.8
|
AMQ22-2911
|
99
|
112
|
90
|
11.2
|
5.1
|
5.1
|
AMQ22-2919
|
507.9
|
511.1
|
453
|
2.5
|
12.2
|
12.2
|
AMQ-350-006
|
160.4
|
175.5
|
485
|
9
|
6.8
|
5.5
|
*Results from Amaruq
mine use capping factors ranging from 10 g/t to 100 g/t gold
depending on the zone.
|
Doris and Madrid deposits at
Hope Bay
Drill hole
|
Deposit /
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
HBBCO-23-153
|
Doris / BCO
WL
|
205.0
|
213.3
|
422
|
6.4
|
24.0
|
15.0
|
incl
|
|
210.0
|
213.3
|
422
|
2.6
|
55.1
|
32.4
|
HBD23-071
|
Doris / BCO
|
731.5
|
737.3
|
607
|
4.8
|
17.1
|
17.1
|
HBM23-065
|
Madrid / Naartok
East
|
430.0
|
434.3
|
336
|
3.7
|
6.8
|
6.8
|
*Results from Doris and
Madrid deposits at Hope Bay use a capping factor of 50 g/t
gold.
|
Fosterville
Drill hole
|
Zone /
Structure
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)*
|
UDH4479
|
Curie
|
314.8
|
319.1
|
779
|
4.2
|
13.2
|
UDH4553
|
Cygnet
|
274.6
|
277.3
|
1,478
|
1.9
|
9.8
|
UDH4646
|
Cygnet
|
182.8
|
184.7
|
1,377
|
1.8
|
16.6
|
UDH4653
|
Wu
|
307.0
|
314.4
|
938
|
7.0
|
8.1
|
*Results from
Fosterville mine are uncapped.
|
Main and Sisar zones at Kittila
Drill hole
|
Zone / Area
|
From
(metres)
|
To (metres
|
Depth of
midpoint
below surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)*
|
RIE22-609
|
Sisar
Central
|
333.0
|
339.0
|
1,199
|
4.9
|
5.0
|
RIE23-604
|
Main Rimpi
|
178.7
|
193.0
|
1,141
|
9.2
|
5.0
|
SUU22-622
|
Sisar Top
|
299.0
|
306.0
|
1,023
|
6.4
|
5.6
|
VUG22-534
|
Main Rimpi
|
161.8
|
174.0
|
1,145
|
8.3
|
4.2
|
*Results from Kittila
mine are uncapped.
|
EXPLORATION DRILL COLLAR COORDINATES
Drill hole
|
UTM East*
|
UTM North*
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
LaRonde
Complex
|
BZ-2022-028
|
686854
|
5346929
|
310
|
27
|
-67
|
1,119
|
BZ-2022-032
|
686854
|
5346929
|
310
|
18
|
-61
|
1,006
|
Goldex
|
GD128-083
|
287085
|
5330366
|
-958
|
73
|
-2
|
210
|
GD128-086
|
287085
|
5330366
|
-957
|
76
|
16
|
204
|
GD128-109
|
287081
|
5330368
|
-958
|
342
|
-8
|
150
|
GD128-111
|
287080
|
5330368
|
-957
|
326
|
9
|
156
|
GD27-053
|
286120
|
5330643
|
74
|
315
|
-33
|
770
|
Wasamac
|
WS22-589
|
633813
|
5342115
|
295
|
174
|
-59
|
693
|
Detour Lake
|
DLM-22-577
|
587520
|
5541955
|
287
|
178
|
-60
|
1,041
|
DLM-22-579
|
587038
|
5541988
|
305
|
176
|
-65
|
1,251
|
DLM-22-580
|
587248
|
5541959
|
299
|
177
|
-69
|
1,299
|
DLM-23-593W
|
589266
|
5541647
|
283
|
181
|
-54
|
756
|
DLM-23-599
|
589311
|
5541438
|
284
|
181
|
-63
|
671
|
DLM-23-601
|
587784
|
5541797
|
286
|
181
|
-60
|
625
|
DLM-23-603
|
587743
|
5541810
|
286
|
180
|
-60
|
849
|
DLM-23-616
|
589267
|
5541626
|
283
|
180
|
-52
|
695
|
DLM-23-617
|
587723
|
5541789
|
286
|
176
|
-60
|
651
|
DLM-23-631
|
587764
|
5541783
|
285
|
178
|
-58
|
603
|
DLM-23-641
|
588168
|
5541559
|
288
|
178
|
-56
|
657
|
Macassa and
AK
|
58-794
|
569793
|
5332065
|
-1,499
|
158
|
38
|
259
|
53-4699
|
570496
|
5332202
|
-1,257
|
306
|
-49
|
640
|
KLAK-169
|
569769
|
5331267
|
108
|
181
|
-35
|
165
|
KLAK-171
|
569768
|
5331267
|
109
|
196
|
-20
|
129
|
Meliadine
|
ML425-9740-D5
|
539732
|
6988907
|
-394
|
140
|
-59
|
385
|
ML425-9740-D36
|
539732
|
6988907
|
-394
|
120
|
-72
|
500
|
ML400-10200-D10
|
540223
|
6988459
|
-318
|
169
|
-38
|
352
|
Amaruq
|
AMQ22-2881
|
606153
|
7255311
|
157
|
134
|
-46
|
285
|
AMQ22-2895
|
606170
|
7255298
|
155
|
155
|
-49
|
282
|
AMQ22-2911
|
606025
|
7255091
|
158
|
144
|
-60
|
158
|
AMQ22-2919
|
607416
|
7255657
|
162
|
327
|
-71
|
699
|
AMQ-350-006
|
606993
|
7255569
|
179
|
329
|
-67
|
263
|
Hope Bay
|
HBBCO-23-153
|
433490
|
7559620
|
-406.0
|
112
|
10
|
417
|
HBD23-071
|
433113
|
7558515
|
33.5
|
73
|
-61
|
1,068
|
HBM23-065
|
433150
|
7551205
|
67.2
|
90
|
-59
|
572
|
Fosterville
|
UDH4479
|
2,988
|
11,907
|
4579
|
89
|
-43
|
342
|
UDH4553
|
1,489
|
6,156
|
3904
|
26
|
-56
|
287
|
UDH4646
|
1,442
|
6,378
|
3840
|
85
|
-20
|
210
|
UDH4653
|
2,890
|
12,222
|
4503
|
101
|
-69
|
326
|
Kittila
|
RIE22-609
|
2558700
|
7538860
|
-891
|
72
|
-15
|
450
|
RIE23-604
|
2558675
|
7539402
|
-842
|
54
|
-25
|
277
|
SUU22-622
|
2558642
|
7536827
|
-849
|
108
|
9
|
343
|
VUG22-534
|
2558678
|
7539400
|
-842
|
73
|
-29
|
264
|
* Coordinate Systems:
NAD 83 UTM Zone 17N for LaRonde; NAD 1983 UTM Zone 18N for Goldex;
NAD 1983 UTM Zone 17N for Wasamac, Detour Lake, Macassa and AK; NAD
1983 UTM Zone 14N for Meliadine and Meadowbank; NAD 1983 UTM Zone
13N for Hope Bay; Mine grid including elevation for Fosterville,
which is located in MGA94 Zone 55; Finnish Coordinate System KKJ
Zone 2 for Kittila.
|
APPENDIX – FINANCIAL INFORMATION
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2023
|
|
2022(i)
|
|
|
|
|
|
Operating
margin(ii):
|
|
|
|
|
Revenues from mining
operations
|
$
|
1,509,661
|
$
|
1,325,688
|
Production
costs
|
|
653,144
|
|
661,735
|
Total operating
margin(ii)
|
|
856,517
|
|
663,953
|
Operating
margin(ii) by mine:
|
|
|
|
|
Quebec
|
|
|
|
|
LaRonde
mine
|
|
62,513
|
|
103,564
|
LaRonde Zone 5
mine
|
|
7,298
|
|
16,656
|
Canadian Malartic
complex(iii)
|
|
80,783
|
|
79,302
|
Goldex mine
|
|
40,228
|
|
37,118
|
Ontario
|
|
|
|
|
Detour Lake
mine
|
|
192,573
|
|
128,058
|
Macassa
mine
|
|
79,900
|
|
24,155
|
Nunavut
|
|
|
|
|
Meliadine
mine
|
|
88,340
|
|
84,279
|
Meadowbank
complex
|
|
79,809
|
|
(5,198)
|
Hope Bay
project
|
|
—
|
|
144
|
Australia
|
|
|
|
|
Fosterville
mine
|
|
132,702
|
|
106,856
|
Europe
|
|
|
|
|
Kittila
mine
|
|
62,724
|
|
46,111
|
Mexico
|
|
|
|
|
Pinos Altos
mine
|
|
18,526
|
|
19,431
|
Creston Mascota
mine
|
|
—
|
|
1,177
|
La India
mine
|
|
11,121
|
|
22,300
|
Total operating
margin(ii)
|
|
856,517
|
|
663,953
|
Amortization of
property, plant and mine development
|
|
303,959
|
|
255,644
|
Revaluation
gain(iv)
|
|
(1,543,414)
|
|
—
|
Exploration, corporate
and other
|
|
150,473
|
|
228,638
|
Income before income
and mining taxes
|
|
1,945,499
|
|
179,671
|
Income and mining taxes
expense
|
|
128,608
|
|
60,595
|
Net income for the
period
|
$
|
1,816,891
|
$
|
119,076
|
Net income per
share — basic
|
$
|
3.87
|
$
|
0.31
|
Net income per
share — diluted
|
$
|
3.86
|
$
|
0.31
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
Cash provided by
operating activities
|
$
|
649,613
|
$
|
507,432
|
Cash used in investing
activities
|
$
|
(1,398,745)
|
$
|
535,652
|
Cash used in financing
activities
|
$
|
836,433
|
$
|
(167,858)
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,892
|
$
|
1,880
|
Silver
(per ounce)
|
$
|
22.95
|
$
|
24.11
|
Zinc
(per tonne)
|
$
|
3,169
|
$
|
3,480
|
Copper
(per tonne)
|
$
|
10,113
|
$
|
10,243
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2023
|
|
2022
|
|
|
|
|
Payable
production(v):
|
|
|
|
Gold
(ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
59,533
|
|
87,549
|
LaRonde Zone 5
mine
|
20,074
|
|
17,488
|
Canadian Malartic
complex(iii)
|
80,685
|
|
80,509
|
Goldex mine
|
34,023
|
|
34,445
|
Ontario
|
|
|
|
Detour Lake
mine
|
161,857
|
|
100,443
|
Macassa
mine
|
64,115
|
|
24,488
|
Nunavut
|
|
|
|
Meliadine
mine
|
90,467
|
|
80,704
|
Meadowbank
complex
|
111,110
|
|
59,765
|
Australia
|
|
|
|
Fosterville
mine
|
86,558
|
|
81,827
|
Europe
|
|
|
|
Kittila
mine
|
63,692
|
|
45,508
|
Mexico
|
|
|
|
Pinos Altos
mine
|
24,134
|
|
25,170
|
Creston Mascota
mine
|
244
|
|
1,006
|
La India
mine
|
16,321
|
|
21,702
|
Total gold
(ounces):
|
812,813
|
|
660,604
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
139
|
|
153
|
LaRonde Zone 5
mine
|
6
|
|
2
|
Canadian Malartic
complex(iii)
|
53
|
|
74
|
Goldex mine
|
1
|
|
1
|
Ontario
|
|
|
|
Detour Lake
mine
|
26
|
|
50
|
Macassa
mine
|
6
|
|
3
|
Nunavut
|
|
|
|
Meliadine
mine
|
8
|
|
9
|
Meadowbank
complex
|
34
|
|
18
|
Australia
|
|
|
|
Fosterville
mine
|
6
|
|
8
|
Europe
|
|
|
|
Kittila
mine
|
3
|
|
3
|
Mexico
|
|
|
|
Pinos Altos
mine
|
248
|
|
256
|
Creston Mascota
mine
|
1
|
|
4
|
La India
mine
|
14
|
|
28
|
Total silver (thousands
of ounces):
|
545
|
|
609
|
|
|
|
|
Zinc
(tonnes)
|
2,287
|
|
1,069
|
Copper
(tonnes)
|
530
|
|
769
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2023
|
|
2022
|
|
|
|
|
Payable metal
sold(vi):
|
|
|
|
Gold
(ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
48,162
|
|
70,967
|
LaRonde Zone 5
mine
|
15,461
|
|
17,595
|
Canadian Malartic
complex(iii)
|
71,809
|
|
72,268
|
Goldex mine
|
35,917
|
|
33,884
|
Ontario
|
|
|
|
Detour Lake
mine
|
163,294
|
|
131,837
|
Macassa
mine
|
62,928
|
|
29,530
|
Nunavut
|
|
|
|
Meliadine
mine
|
89,586
|
|
87,772
|
Meadowbank
complex
|
110,025
|
|
48,755
|
Hope Bay
mine
|
—
|
|
98
|
Australia
|
|
|
|
Fosterville
mine
|
89,000
|
|
101,950
|
Europe
|
|
|
|
Kittila
mine
|
60,720
|
|
51,615
|
Mexico
|
|
|
|
Pinos Altos
mine
|
24,236
|
|
24,787
|
Creston Mascota
mine
|
—
|
|
855
|
La India
mine
|
16,420
|
|
21,009
|
Total gold
(ounces):
|
787,558
|
|
692,922
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
140
|
|
160
|
LaRonde Zone 5
mine
|
6
|
|
4
|
Canadian Malartic
complex(iii)
|
50
|
|
79
|
Goldex mine
|
1
|
|
1
|
Ontario
|
|
|
|
Detour Lake
mine
|
30
|
|
50
|
Macassa
mine
|
9
|
|
3
|
Nunavut
|
|
|
|
Meliadine
mine
|
9
|
|
9
|
Meadowbank
complex
|
36
|
|
12
|
Australia
|
|
|
|
Fosterville
mine
|
7
|
|
8
|
Europe
|
|
|
|
Kittila
mine
|
3
|
|
4
|
Mexico
|
|
|
|
Pinos Altos
mine
|
247
|
|
249
|
Creston Mascota
mine
|
—
|
|
7
|
La India
mine
|
14
|
|
26
|
Total silver (thousands
of ounces):
|
552
|
|
612
|
|
|
|
|
Zinc
(tonnes)
|
2,131
|
|
1,034
|
Copper
(tonnes)
|
568
|
|
766
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2023
|
|
2022
|
|
|
|
|
Total cash costs per
ounce of gold produced — co-product
basis(vii):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
$
1,136
|
|
$
674
|
LaRonde Zone 5
mine
|
1,168
|
|
979
|
Canadian Malartic
complex(iii)
|
808
|
|
813
|
Goldex mine
|
810
|
|
777
|
Ontario
|
|
|
|
Detour Lake
mine
|
775
|
|
612
|
Macassa
mine
|
607
|
|
790
|
Nunavut
|
|
|
|
Meliadine
mine
|
940
|
|
1,005
|
Meadowbank
complex
|
1,141
|
|
1,815
|
Australia
|
|
|
|
Fosterville
mine
|
398
|
|
311
|
Europe
|
|
|
|
Kittila
mine
|
807
|
|
1,041
|
Mexico
|
|
|
|
Pinos Altos
mine
|
1,347
|
|
1,327
|
Creston Mascota
mine
|
—
|
|
542
|
La India
mine
|
1,328
|
|
852
|
Weighted average total
cash costs per ounce of gold produced
|
$
861
|
|
$
854
|
|
|
|
|
Total cash costs per
ounce of gold produced — by-product
basis(vii):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
$
892
|
|
$
478
|
LaRonde Zone 5
mine
|
1,154
|
|
973
|
Canadian Malartic
complex(iii)
|
794
|
|
792
|
Goldex mine
|
810
|
|
777
|
Ontario
|
|
|
|
Detour Lake
mine
|
771
|
|
600
|
Macassa
mine
|
604
|
|
787
|
Nunavut
|
|
|
|
Meliadine
mine
|
937
|
|
1,002
|
Meadowbank
complex
|
1,134
|
|
1,811
|
Australia
|
|
|
|
Fosterville
mine
|
396
|
|
309
|
Europe
|
|
|
|
Kittila
mine
|
806
|
|
1,039
|
Mexico
|
|
|
|
Pinos Altos
mine
|
1,116
|
|
1,078
|
Creston Mascota
mine
|
—
|
|
407
|
La India
mine
|
1,308
|
|
820
|
Weighted average total
cash costs per ounce of gold produced
|
$
832
|
|
$
811
|
|
|
|
|
Notes:
|
(i) Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Merger.
|
(ii) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See
Note Regarding Certain Measures of Performance for more
information on the Company's use of operating margin and
Reconciliation of Non-GAAP Financial Performance Measures -
Reconciliation of Operating Margin to Net Income for a
reconciliation of this measure to the recent IFRS
measure.
|
(iii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic complex to and including March 30, 2023 and 100%
interest thereafter.
|
(iv) Revaluation gain
on the 50% interest the Company owned in Canadian Malartic complex
prior to the Yamana Transaction.
|
(v) Payable production
(a non-GAAP non-financial performance measure) is the quantity
of mineral produced during a period contained in products that are
or will be sold by the Company, whether such products are sold
during the period or held as inventories at the end of
the period.
|
(vi) The Canadian
Malartic complex's payable metal sold excludes the 5.0% net smelter
return royalty held by Osisko Gold Royalties Ltd. The Detour
Lake mine's payable metal sold excludes the 2% net smelter royalty
held by Franco-Nevada Corporation. The Macassa mine's payable metal
sold excludes the 1.5% net smelter royalty held by Franco-Nevada
Corporation.
|
(vii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See Non-GAAP Financial Performance Measures —
Total Cash Costs per Ounce of Gold Produced and Minesite
Costs per Tonne and Note to Investors Concerning Certain
Measures of Performance for more information on the Company's
calculation and use of total cash cost per ounce of gold
produced.
|
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
(thousands of United
States dollars, except share amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
As at
|
|
As at
|
|
|
March 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
744,645
|
$
|
658,625
|
Trade
receivables
|
|
7,212
|
|
8,579
|
Inventories
|
|
1,238,640
|
|
1,209,075
|
Income taxes
recoverable
|
|
42,090
|
|
35,054
|
Fair value of
derivative financial instruments
|
|
9,140
|
|
8,774
|
Other current
assets
|
|
265,809
|
|
259,952
|
Total current
assets
|
|
2,307,536
|
|
2,180,059
|
Non-current
assets:
|
|
|
|
|
Goodwill
|
|
3,774,892
|
|
2,044,123
|
Property, plant and
mine development
|
|
22,486,340
|
|
18,459,400
|
Investments
|
|
351,235
|
|
332,742
|
Deferred income and
mining tax asset
|
|
12,508
|
|
11,574
|
Other
assets
|
|
713,905
|
|
466,910
|
Total assets
|
$
|
29,646,416
|
$
|
23,494,808
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
694,148
|
$
|
672,503
|
Share based
liabilities
|
|
13,496
|
|
15,148
|
Interest
payable
|
|
20,507
|
|
16,496
|
Income taxes
payable
|
|
26,135
|
|
4,187
|
Current portion of
long-term debt
|
|
100,000
|
|
100,000
|
Reclamation
provision
|
|
36,795
|
|
23,508
|
Lease
obligations
|
|
42,644
|
|
36,466
|
Fair value of
derivative financial instruments
|
|
62,591
|
|
78,114
|
Total current
liabilities
|
|
996,316
|
|
946,422
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
|
2,242,503
|
|
1,242,070
|
Reclamation
provision
|
|
1,006,219
|
|
878,328
|
Lease
obligations
|
|
128,381
|
|
114,876
|
Share based
liabilities
|
|
7,650
|
|
17,277
|
Deferred income and
mining tax liabilities
|
|
5,397,889
|
|
3,981,875
|
Other
liabilities
|
|
81,417
|
|
72,615
|
Total
liabilities
|
|
9,860,375
|
|
7,253,463
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Common
shares:
|
|
|
|
|
Outstanding — 494,280,588 common shares issued, less 733,157
shares held in trust
|
|
18,161,019
|
|
16,251,221
|
Stock
options
|
|
200,161
|
|
197,430
|
Contributed
surplus
|
|
22,074
|
|
23,280
|
Retained earnings
(deficit)
|
|
1,429,346
|
|
(201,580)
|
Other
reserves
|
|
(26,559)
|
|
(29,006)
|
Total equity
|
|
19,786,041
|
|
16,241,345
|
Total liabilities and
equity
|
$
|
29,646,416
|
$
|
23,494,808
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2023
|
|
2022
|
|
|
|
|
Restated(i)
|
|
|
|
|
|
REVENUES
|
|
|
|
|
Revenues from mining
operations
|
$
|
1,509,661
|
$
|
1,325,688
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
Production(ii)
|
|
653,144
|
|
661,735
|
Exploration and
corporate development
|
|
53,768
|
|
65,842
|
Amortization of
property, plant and mine development
|
|
303,959
|
|
255,644
|
General and
administrative
|
|
48,208
|
|
67,542
|
Finance
costs
|
|
23,448
|
|
22,653
|
Gain on derivative
financial instruments
|
|
(6,539)
|
|
(28,664)
|
Foreign currency
translation loss
|
|
220
|
|
1,210
|
Care and
maintenance
|
|
11,245
|
|
10,456
|
Revaluation
gain(iii)
|
|
(1,543,414)
|
|
—
|
Other
expenses
|
|
20,123
|
|
89,599
|
Income before income
and mining taxes
|
|
1,945,499
|
|
179,671
|
Income and mining taxes
expense
|
|
128,608
|
|
60,595
|
Net income for the
period
|
$
|
1,816,891
|
$
|
119,076
|
|
|
|
|
|
Net income per share -
basic
|
$
|
3.87
|
$
|
0.31
|
Net income per share -
diluted
|
$
|
3.86
|
$
|
0.31
|
|
|
|
|
|
Weighted average number
of common shares outstanding (in thousands):
|
|
|
|
|
Basic
|
|
468,968
|
|
384,708
|
Diluted
|
|
470,455
|
|
385,588
|
|
|
|
|
|
Notes:
|
|
|
|
|
(i) Certain
previously reported line items have been restated to reflect the
final purchase price allocation of the Kirkland Merger.
|
(ii)
Exclusive of amortization, which is shown separately.
|
(iii)
Re-valuation gain on the 50% interest previously owned in the
Canadian Malartic complex.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2023(i)
|
|
2022
|
|
|
|
Restated(ii)
|
OPERATING
ACTIVITIES
|
|
|
|
Net income for the
period
|
$
1,816,891
|
|
$
119,076
|
Add (deduct) adjusting
items:
|
|
|
|
Amortization of
property, plant and mine development
|
303,959
|
|
255,644
|
Revaluation
gain(iii)
|
(1,543,414)
|
|
—
|
Deferred income and
mining taxes
|
36,103
|
|
(4,877)
|
Unrealized gain on
currency and commodity derivatives
|
(15,888)
|
|
(24,055)
|
Unrealized gain on
warrants
|
(4,663)
|
|
(913)
|
Stock-based
compensation
|
13,147
|
|
22,248
|
Foreign currency
translation loss
|
220
|
|
1,210
|
Other
|
2,444
|
|
(2,321)
|
Changes in non-cash
working capital balances:
|
|
|
|
Trade
receivables
|
8,395
|
|
39,068
|
Income
taxes
|
23,977
|
|
(39,870)
|
Inventories
|
2,068
|
|
178,152
|
Other current
assets
|
10,995
|
|
(39,607)
|
Accounts payable and
accrued liabilities
|
(7,269)
|
|
(7,644)
|
Interest
payable
|
2,648
|
|
11,321
|
Cash provided by
operating activities
|
649,613
|
|
507,432
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
Additions to property,
plant and mine development
|
(384,934)
|
|
(293,151)
|
Yamana transaction, net
of cash and cash equivalents
|
(1,000,617)
|
|
—
|
Cash and cash
equivalents acquired in Kirkland acquisition
|
—
|
|
838,732
|
Proceeds from sale of
property, plant and mine development
|
745
|
|
387
|
Net sales of short-term
investments
|
379
|
|
3,127
|
Net proceeds from sale
of equity securities
|
419
|
|
—
|
Purchases of equity
securities and other investments
|
(14,737)
|
|
(13,443)
|
Cash (used in) provided
by investing activities
|
(1,398,745)
|
|
535,652
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
Proceeds from Credit
Facility
|
1,000,000
|
|
100,000
|
Repayment of Credit
Facility
|
—
|
|
(100,000)
|
Repayment of lease
obligations
|
(9,748)
|
|
(8,310)
|
Dividends
paid
|
(156,163)
|
|
(154,782)
|
Repurchase of common
shares
|
(14,564)
|
|
(27,889)
|
Proceeds on exercise of
stock options
|
10,302
|
|
17,841
|
Common shares
issued
|
6,606
|
|
5,282
|
Cash used in financing
activities
|
836,433
|
|
(167,858)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1,281)
|
|
983
|
Net increase in cash
and cash equivalents during the period
|
86,020
|
|
876,209
|
Cash and cash
equivalents, beginning of period
|
658,625
|
|
185,786
|
Cash and cash
equivalents, end of period
|
$
744,645
|
|
$
1,061,995
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
Interest
paid
|
$
13,051
|
|
$
8,203
|
Income and mining taxes
paid
|
$
64,937
|
|
$
103,400
|
|
|
|
|
Notes:
|
(i)
|
Includes the
preliminary purchase price allocation of the Yamana Transaction,
which is subject to change.
|
(ii)
|
Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Kirkland Merger.
|
(iii)
|
Re-valuation gain on
the 50% interest previously owned in the Canadian Malartic
complex.
|
AGNICO EAGLE MINES
LIMITED
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
(thousands of
United States dollars, except where noted)
|
|
Refer to Note to
Investors Concerning Certain Measures of Performance in the
MD&A for details on the composition, usefulness and other
information regarding the
Company's use of the
non-GAAP measures total cash costs per ounce of gold produced and
minesite costs pertonne
|
The following tables
set out a reconciliation of total cash costs per ounce of gold
produced (on both a by-product basis and co-product basis) and
minesite costs per
tonne to production
costs, exclusive of amortization, as presented in the condensed
interim consolidated statements of income in accordance with
IFRS
|
|
|
|
|
|
|
|
Total Production
Costs by Mine
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
(thousands of United
States dollars)
|
|
2023
|
|
2022
|
Quebec
|
|
|
|
|
|
|
LaRonde mine
|
|
$
39,707
|
|
$
45,841
|
LaRonde Zone 5
mine
|
|
22,224
|
|
16,733
|
LaRonde
complex
|
|
61,931
|
|
62,574
|
Canadian Malartic
complex(i)
|
|
57,291
|
|
56,937
|
Goldex mine
|
|
27,835
|
|
26,217
|
Ontario
|
|
|
|
|
|
|
Detour Lake
mine
|
|
114,022
|
|
119,965
|
Macassa mine
|
|
37,959
|
|
32,314
|
Nunavut
|
|
|
|
|
|
|
Meliadine
mine
|
|
81,194
|
|
78,679
|
Meadowbank
complex
|
|
130,004
|
|
96,711
|
Australia
|
|
|
|
|
|
|
Fosterville
mine
|
|
36,599
|
|
88,001
|
Europe
|
|
|
|
|
|
|
Kittila mine
|
|
53,295
|
|
49,451
|
Mexico
|
|
|
|
|
|
|
Pinos Altos
mine
|
|
32,922
|
|
32,536
|
Creston Mascota
mine
|
|
—
|
|
615
|
La India
mine
|
|
20,092
|
|
17,735
|
Production costs per
the condensed interim consolidated statements of income
|
|
$
653,144
|
|
$
661,735
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold Produced by
Mine and Reconciliation of Production Costs to Minesite Costs
per
Tonne by
Mine
|
|
|
|
|
|
|
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31,
2023
|
|
Three Months
Ended
March 31,
2022
|
Gold production
(ounces)
|
|
|
59,533
|
|
|
87,549
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
39,707
|
$
667
|
|
$
45,841
|
$
524
|
Inventory
adjustments(ii)
|
|
22,505
|
378
|
|
10,927
|
125
|
Realized gains and
losses on hedges of production costs
|
|
1,078
|
18
|
|
(485)
|
(6)
|
Other
adjustments(v)
|
|
4,348
|
73
|
|
2,762
|
31
|
Cash operating costs
(co-product basis)
|
|
$
67,638
|
$ 1,136
|
|
$
59,045
|
$
674
|
By-product metal
revenues
|
|
(14,532)
|
(244)
|
|
(17,218)
|
(196)
|
Cash operating costs
(by-product basis)
|
|
$
53,106
|
$
892
|
|
$
41,827
|
$
478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per
Tonne
|
|
Three Months
Ended
March 31,
2023
|
|
Three Months
Ended
March 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
389
|
|
|
455
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
39,707
|
$
102
|
|
$
45,841
|
$
101
|
Production costs
(C$)
|
|
C$
53,573
|
C$ 138
|
|
C$
58,015
|
C$ 128
|
Inventory adjustments
(C$)(ii)
|
|
29,723
|
76
|
|
12,357
|
27
|
Other adjustments
(C$)(v)
|
|
(3,141)
|
(8)
|
|
(3,506)
|
(8)
|
Minesite operating
costs (C$)
|
|
C$
80,155
|
C$ 206
|
|
C$
66,866
|
C$ 147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31,
2023
|
|
Three Months
Ended
March 31,
2022
|
Gold production
(ounces)
|
|
|
20,074
|
|
|
17,488
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
22,224
|
$ 1,107
|
|
$
16,733
|
$
957
|
Inventory
adjustments(ii)
|
|
523
|
26
|
|
465
|
27
|
Realized gains and
losses on hedges of production costs
|
|
359
|
18
|
|
(113)
|
(7)
|
Other
adjustments(v)
|
|
336
|
17
|
|
30
|
2
|
Cash operating costs
(co-product basis)
|
|
$
23,442
|
$ 1,168
|
|
$
17,115
|
$
979
|
By-product metal
revenues
|
|
(275)
|
(14)
|
|
(91)
|
(6)
|
Cash operating costs
(by-product basis)
|
|
$
23,167
|
$ 1,154
|
|
$
17,024
|
$
973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
318
|
|
|
280
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
22,224
|
$
70
|
|
$
16,733
|
$
60
|
Production costs
(C$)
|
|
C$
29,988
|
C$
94
|
|
C$
21,173
|
C$
76
|
Inventory adjustments
(C$)(ii)
|
|
738
|
3
|
|
576
|
2
|
Minesite operating
costs (C$)
|
|
C$
30,726
|
C$
97
|
|
C$
21,749
|
C$
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
79,607
|
|
|
105,037
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
61,931
|
$
778
|
|
$
62,574
|
$
596
|
Inventory
adjustments(ii)
|
|
23,028
|
289
|
|
11,392
|
108
|
Realized gains and
losses on hedges of production costs
|
|
1,437
|
18
|
|
(598)
|
(6)
|
Other
adjustments(v)
|
|
4,684
|
59
|
|
2,792
|
27
|
Cash operating costs
(co-product basis)
|
|
$
91,080
|
$ 1,144
|
|
$
76,160
|
$
725
|
By-product metal
revenues
|
|
(14,807)
|
(186)
|
|
(17,309)
|
(165)
|
Cash operating costs
(by-product basis)
|
|
$
76,273
|
$
958
|
|
$
58,851
|
$
560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
complex
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
707
|
|
|
735
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
61,931
|
$
88
|
|
$
62,574
|
$
85
|
Production costs
(C$)
|
|
C$
83,561
|
C$ 118
|
|
C$
79,188
|
C$ 108
|
Inventory adjustments
(C$)(ii)
|
|
30,461
|
43
|
|
12,933
|
18
|
Other adjustments
(C$)(v)
|
|
(3,141)
|
(4)
|
|
(3,506)
|
(5)
|
Minesite operating
costs (C$)
|
|
C$
110,881
|
C$ 157
|
|
C$
88,615
|
C$ 121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
complex
Per Ounce of Gold
Produced(i)
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
80,685
|
|
|
80,509
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
57,291
|
$
710
|
|
$
56,937
|
$
707
|
Inventory
adjustments(ii)
|
|
495
|
6
|
|
728
|
9
|
Other
adjustments(v)
|
|
7,382
|
92
|
|
7,782
|
97
|
Cash operating costs
(co-product basis)
|
|
$
65,168
|
$
808
|
|
$
65,447
|
$
813
|
By-product metal
revenues
|
|
(1,138)
|
(14)
|
|
(1,662)
|
(21)
|
Cash operating costs
(by-product basis)
|
|
$
64,030
|
$
794
|
|
$
63,785
|
$
792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
complex
Per
Tonne(i)
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
2,262
|
|
|
2,412
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
57,291
|
$
25
|
|
$
56,937
|
$
24
|
Production costs
(C$)
|
|
C$
76,665
|
C$
34
|
|
C$
71,629
|
C$
30
|
Inventory adjustments
(C$)(ii)
|
|
740
|
—
|
|
1,010
|
—
|
Other adjustments
(C$)(v)
|
|
9,825
|
5
|
|
9,647
|
4
|
Minesite operating
costs (C$)
|
|
C$
87,230
|
C$
39
|
|
C$
82,286
|
C$
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
34,023
|
|
|
34,445
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
27,835
|
$
818
|
|
$
26,217
|
$
761
|
Inventory
adjustments(ii)
|
|
(1,037)
|
(30)
|
|
710
|
21
|
Realized gains and
losses on hedges of production costs
|
|
707
|
20
|
|
(215)
|
(6)
|
Other
adjustments(v)
|
|
62
|
2
|
|
54
|
1
|
Cash operating costs
(co-product basis)
|
|
$
27,567
|
$
810
|
|
$
26,766
|
$
777
|
By-product metal
revenues
|
|
(14)
|
—
|
|
(16)
|
—
|
Cash operating costs
(by-product basis)
|
|
$
27,553
|
$
810
|
|
$
26,750
|
$
777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
698
|
|
|
743
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
27,835
|
$
40
|
|
$
26,217
|
$
35
|
Production costs
(C$)
|
|
C$
37,627
|
C$
54
|
|
C$
33,220
|
C$
45
|
Inventory adjustments
(C$)(ii)
|
|
(1,390)
|
(2)
|
|
892
|
1
|
Minesite operating
costs (C$)
|
|
C$
36,237
|
C$
52
|
|
C$
34,112
|
C$
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
161,857
|
|
|
100,443
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
114,022
|
$
704
|
|
$
119,965
|
$ 1,194
|
Inventory
adjustments(ii)
|
|
306
|
2
|
|
(16,621)
|
(166)
|
Realized gains and
losses on hedges of production costs
|
|
3,554
|
22
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
|
—
|
—
|
|
(46,147)
|
(459)
|
Other
adjustments(v)
|
|
7,575
|
47
|
|
4,285
|
43
|
Cash operating costs
(co-product basis)
|
|
$
125,457
|
$
775
|
|
$
61,482
|
$
612
|
By-product metal
revenues
|
|
(682)
|
(4)
|
|
(1,205)
|
(12)
|
Cash operating costs
(by-product basis)
|
|
$
124,775
|
$
771
|
|
$
60,277
|
$
600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
6,397
|
|
|
3,270
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
114,022
|
$
18
|
|
$
119,965
|
$
37
|
Production costs
(C$)
|
|
C$
153,908
|
C$
24
|
|
C$
151,818
|
C$
46
|
Inventory adjustments
(C$)(ii)
|
|
515
|
—
|
|
(21,072)
|
(6)
|
Purchase price
allocation to inventory(C$)(iv)
|
|
—
|
—
|
|
(58,400)
|
(18)
|
Other adjustments
(C$)(v)
|
|
8,765
|
2
|
|
5,400
|
2
|
Minesite operating
costs (C$)
|
|
C$
163,188
|
C$
26
|
|
C$
77,746
|
C$
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
64,115
|
|
|
24,488
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
37,959
|
$
592
|
|
$
32,314
|
$ 1,320
|
Inventory
adjustments(ii)
|
|
(1,295)
|
(20)
|
|
(2,100)
|
(86)
|
Realized gains and
losses on hedges of production costs
|
|
1,137
|
18
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
|
—
|
—
|
|
(10,827)
|
(442)
|
Other
adjustments(v)
|
|
1,144
|
17
|
|
(44)
|
(2)
|
Cash operating costs
(co-product basis)
|
|
$
38,945
|
$
607
|
|
$
19,343
|
$
790
|
By-product metal
revenues
|
|
(208)
|
(3)
|
|
(73)
|
(3)
|
Cash operating costs
(by-product basis)
|
|
$
38,737
|
$
604
|
|
$
19,270
|
$
787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
87
|
|
|
47
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
37,959
|
$
436
|
|
$
32,314
|
$
689
|
Production costs
(C$)
|
|
C$
51,242
|
C$ 589
|
|
C$
40,830
|
C$ 871
|
Inventory adjustments
(C$)(ii)
|
|
(1,717)
|
(21)
|
|
(2,644)
|
(56)
|
Purchase price
allocation to inventory(C$)(iv)
|
|
—
|
—
|
|
(13,578)
|
(290)
|
Other adjustments
(C$)(v)
|
|
1,516
|
17
|
|
(68)
|
(2)
|
Minesite operating
costs (C$)
|
|
C$
51,041
|
C$ 585
|
|
C$
24,540
|
C$ 523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
90,467
|
|
|
80,704
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
81,194
|
$
897
|
|
$
78,679
|
$
975
|
Inventory
adjustments(ii)
|
|
3,624
|
40
|
|
3,632
|
45
|
Realized gains and
losses on hedges of production costs
|
|
88
|
1
|
|
(1,311)
|
(16)
|
Other
adjustments(v)
|
|
105
|
2
|
|
95
|
1
|
Cash operating costs
(co-product basis)
|
|
$
85,011
|
$
940
|
|
$
81,095
|
$ 1,005
|
By-product metal
revenues
|
|
(200)
|
(3)
|
|
(217)
|
(3)
|
Cash operating costs
(by-product basis)
|
|
$
84,811
|
$
937
|
|
$
80,878
|
$ 1,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
476
|
|
|
432
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
81,194
|
$
170
|
|
$
78,679
|
$
182
|
Production costs
(C$)
|
|
C$
108,881
|
C$ 228
|
|
C$
99,437
|
C$ 230
|
Inventory adjustments
(C$)(ii)
|
|
5,050
|
11
|
|
4,525
|
11
|
Minesite operating
costs (C$)
|
|
C$
113,931
|
C$ 239
|
|
C$
103,962
|
C$ 241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
111,110
|
|
|
59,765
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
130,004
|
$ 1,170
|
|
$
96,711
|
$ 1,618
|
Inventory
adjustments(ii)
|
|
(1,654)
|
(15)
|
|
15,203
|
254
|
Realized gains and
losses on hedges of production costs
|
|
(1,499)
|
(13)
|
|
(2,043)
|
(34)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
(1,436)
|
(24)
|
Other
adjustments(v)
|
|
(55)
|
(1)
|
|
66
|
1
|
Cash operating costs
(co-product basis)
|
|
$
126,796
|
$ 1,141
|
|
$
108,501
|
$ 1,815
|
By-product metal
revenues
|
|
(825)
|
(7)
|
|
(295)
|
(4)
|
Cash operating costs
(by-product basis)
|
|
$
125,971
|
$ 1,134
|
|
$
108,206
|
$ 1,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
complex
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
983
|
|
|
892
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
130,004
|
$
132
|
|
$
96,711
|
$
108
|
Production costs
(C$)
|
|
C$
172,978
|
C$ 176
|
|
C$
122,465
|
C$ 137
|
Inventory adjustments
(C$)(ii)
|
|
(2,226)
|
(2)
|
|
18,808
|
21
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
—
|
—
|
|
(1,793)
|
(2)
|
Minesite operating
costs (C$)
|
|
C$
170,752
|
C$ 174
|
|
C$
139,480
|
C$ 156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
86,558
|
|
|
81,827
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
36,599
|
$
423
|
|
$
88,001
|
$ 1,075
|
Inventory
adjustments(ii)
|
|
(2,364)
|
(27)
|
|
(5,839)
|
(71)
|
Realized gains and
losses on hedges of production costs
|
|
188
|
2
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
|
—
|
—
|
|
(56,677)
|
(693)
|
Other
adjustments(v)
|
|
46
|
—
|
|
—
|
—
|
Cash operating costs
(co-product basis)
|
|
$
34,469
|
$
398
|
|
$
25,485
|
$
311
|
By-product metal
revenues
|
|
(157)
|
(2)
|
|
(188)
|
(2)
|
Cash operating costs
(by-product basis)
|
|
$
34,312
|
$
396
|
|
$
25,297
|
$
309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
148
|
|
|
91
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
36,599
|
$
248
|
|
$
88,001
|
$
963
|
Production costs
(A$)
|
|
A$ 54,182
|
A$ 367
|
|
A$
117,226
|
A$
1,283
|
Inventory adjustments
(A$)(ii)
|
|
(3,601)
|
(24)
|
|
(8,205)
|
(90)
|
Purchase price
allocation to inventory(A$)(iv)
|
|
—
|
—
|
|
(75,500)
|
(826)
|
Minesite operating
costs (A$)
|
|
A$ 50,581
|
A$ 343
|
|
A$ 33,521
|
A$ 367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
63,692
|
|
|
45,508
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
53,295
|
$
837
|
|
$
49,451
|
$ 1,087
|
Inventory
adjustments(ii)
|
|
(40)
|
(1)
|
|
(2,791)
|
(62)
|
Realized gains and
losses on hedges of production costs
|
|
(633)
|
(10)
|
|
678
|
15
|
Other
adjustments(v)
|
|
(1,223)
|
(19)
|
|
54
|
1
|
Cash operating costs
(co-product basis)
|
|
$
51,399
|
$
807
|
|
$
47,392
|
$ 1,041
|
By-product metal
revenues
|
|
(69)
|
(1)
|
|
(89)
|
(2)
|
Cash operating costs
(by-product basis)
|
|
$
51,330
|
$
806
|
|
$
47,303
|
$ 1,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
496
|
|
|
461
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
53,295
|
$
107
|
|
$
49,451
|
$
107
|
Production costs
(€)
|
|
€
48,751
|
€
98
|
|
€
43,908
|
€
95
|
Inventory adjustments
(€)(ii)
|
|
(114)
|
—
|
|
(2,274)
|
(5)
|
Minesite operating
costs (€)
|
|
€
48,637
|
€
98
|
|
€
41,634
|
€
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
24,134
|
|
|
25,170
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
32,922
|
$ 1,364
|
|
$
32,536
|
$ 1,293
|
Inventory
adjustments(ii)
|
|
(248)
|
(10)
|
|
799
|
31
|
Realized gains and
losses on hedges of production costs
|
|
(453)
|
(19)
|
|
(234)
|
(9)
|
Other
adjustments(v)
|
|
292
|
12
|
|
303
|
12
|
Cash operating costs
(co-product basis)
|
|
$
32,513
|
$ 1,347
|
|
$
33,404
|
$ 1,327
|
By-product metal
revenues
|
|
(5,574)
|
(231)
|
|
(6,263)
|
(249)
|
Cash operating costs
(by-product basis)
|
|
$
26,939
|
$ 1,116
|
|
$
27,141
|
$ 1,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
364
|
|
|
384
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
32,922
|
$
90
|
|
$
32,536
|
$
85
|
Inventory
adjustments(ii)
|
|
(248)
|
—
|
|
799
|
2
|
Minesite operating
costs
|
|
$
32,674
|
$
90
|
|
$
33,335
|
$
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
244
|
|
|
1,006
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
—
|
$
—
|
|
$
615
|
$
611
|
Inventory
adjustments(ii)
|
|
—
|
—
|
|
(87)
|
(87)
|
Other
adjustments(v)
|
|
—
|
—
|
|
18
|
18
|
Cash operating costs
(co-product basis)
|
|
$
—
|
$
—
|
|
$
546
|
$
542
|
By-product metal
revenues
|
|
—
|
—
|
|
(135)
|
(135)
|
Cash operating costs
(by-product basis)
|
|
$
—
|
$
—
|
|
$
411
|
$
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per
Tonne(vi)
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
—
|
|
|
—
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
—
|
$
—
|
|
$
615
|
$
—
|
Inventory
adjustments(ii)
|
|
—
|
—
|
|
(87)
|
—
|
Other
adjustments(v)
|
|
—
|
—
|
|
(528)
|
—
|
Minesite operating
costs
|
|
$
—
|
$
—
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Gold production
(ounces)
|
|
|
16,321
|
|
|
21,702
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
20,092
|
$ 1,231
|
|
$
17,735
|
$
817
|
Inventory
adjustments(ii)
|
|
1,448
|
89
|
|
568
|
26
|
Other
adjustments(v)
|
|
129
|
8
|
|
196
|
9
|
Cash operating costs
(co-product basis)
|
|
$
21,669
|
$ 1,328
|
|
$
18,499
|
$
852
|
By-product metal
revenues
|
|
(315)
|
(20)
|
|
(708)
|
(32)
|
Cash operating costs
(by-product basis)
|
|
$
21,354
|
$ 1,308
|
|
$
17,791
|
$
820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
660
|
|
|
1,563
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
20,092
|
$
30
|
|
$
17,735
|
$
11
|
Inventory
adjustments(ii)
|
|
1,448
|
3
|
|
568
|
1
|
Minesite operating
costs
|
|
$
21,540
|
$
33
|
|
$
18,303
|
$
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
(i) The
information set out in this table reflects the Company's 50%
interest in the Canadian Malartic complex to and including March
30, 2023 and 100% interest
thereafter
|
(ii) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer.
As the total cash costs per ounce of gold produced are calculated
on a production basis, an inventory adjustment is made to reflect
the portion of production not yet
recognized as revenue
|
(iii) This adjustment
reflects the costs associated with the temporary suspension of
mining activities at the Company's mine sites in response to the
COVID-19 pandemic
and includes primarily payroll and other incidental costs
associated with maintaining the sites and properties, and payroll
costs associated with employees who were
not working during the period of reduced or suspended operations.
These expenses also include payroll costs of employees who could
not work following the period
of temporary suspension or reduced operations due to the Company's
effort to prevent or curtail community transmission of COVID-19.
These costs were previously
classified as "other adjustments" and have now been disclosed
separately to provide additional detail on the reconciliation,
allowing investors to better understand the
impact of such events on the total cash costs per ounce and
minesite cost per tonne
|
(iv) On February 8,
2022, the Company completed the Merger and this adjustment reflects
the fair value allocated to inventory on the purchase price
allocation
|
(v) Other adjustments
consists of costs associated with a 5% in-kind royalty paid in
respect of the Canadian Malartic complex, a 2% in-kind royalty paid
in respect of
the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the
Macassa mine, smelting, refining, and marketing charges to
production costs
|
(vi) The Creston
Mascota mine's cost calculations per tonne for the three months
ended March 31, 2022 exclude approximately $0.5 million of
production costs
incurred during the period, following the ceasing of mining
activities at the Bravo pit during the third quarter of
2020
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce
Produced(vii) and All-in Sustaining Costs per Ounce of
Gold Produced(vii)
|
|
Refer to Note to
Investors Concerning Certain Measures of Performance in the
MD&A for details on the composition, usefulness and other
information
regarding the Company's use of the non-GAAP measure all-in
sustaining costs per ounce of gold produced
|
The following tables
set out a reconciliation of production costs to the Company's use
of the non-GAAP measure all-in sustaining costs per ounce of
gold produced for the three months ended March 31, 2023 and
March 31, 2022 on both a by-product basis (deducting
by-product metal revenues from
production costs) and co-product basis (without deducting
by-product metal revenues)
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
(United States dollars per ounce of gold
produced, except where noted)
|
|
2023
|
|
2022
|
Production costs per
the condensed interim consolidated statements of income
(thousands of
United States dollars)
|
$
|
653,144
|
$
|
661,735
|
Gold production
(ounces)
|
|
812,813
|
|
660,604
|
Production costs per
ounce of adjusted gold production
|
$
|
804
|
$
|
1,002
|
Adjustments:
|
|
|
|
|
Inventory
adjustments(i)
|
|
30
|
|
10
|
Purchase price
allocation to inventory(ii)
|
|
—
|
|
(172)
|
Realized gains and
losses on hedges of production costs
|
|
6
|
|
(6)
|
Operational care and
maintenance costs due to COVID-19(iii)
|
|
—
|
|
(2)
|
Other(iv)
|
|
21
|
|
22
|
Total cash costs per
ounce of gold produced (co-product basis)(v)
|
$
|
861
|
$
|
854
|
By-product metal
revenues
|
|
(29)
|
|
(43)
|
Total cash costs per
ounce of gold produced (by-product basis)(v)
|
$
|
832
|
$
|
811
|
Adjustments:
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
|
215
|
|
151
|
General and
administrative expenses (including stock option expense)
|
|
59
|
|
102
|
Non-cash reclamation
provision and sustaining leases(vi)
|
|
19
|
|
15
|
All-in sustaining costs
per ounce of gold produced (by-product basis)
|
$
|
1,125
|
$
|
1,079
|
By-product metal
revenues
|
|
29
|
|
43
|
All-in sustaining costs
per ounce of gold produced (co-product basis)
|
$
|
1,154
|
$
|
1,122
|
|
|
|
|
|
Notes:
|
(i)
|
Under the Company's
revenue recognition policy, revenue from contracts with customers
is recognized upon the transfer of control over metals sold
to the customer. As the total cash costs per ounce of gold produced
are calculated on a production basis, an inventory adjustment is
made to reflect
the portion of production not yet recognized as revenue
|
(ii)
|
On February 8, 2022 the
Company completed the Merger and this adjustment reflects the fair
value allocated to inventory on the purchase price
allocation
|
(iii)
|
This adjustment
reflects the costs associated with the temporary suspension of
mining activities at the Company's mine sites in response to
the
COVID-19 pandemic which primarily includes payroll and other
incidental costs associated with maintaining the sites and
properties, and payroll
costs associated with employees who were not working during the
period of reduced or suspended operations. These costs were
previously classified
as "other adjustments" and have now been disclosed separately to
provide additional detail on the reconciliation, allowing investors
to better
understand the impact of such events on the total cash costs per
ounce and minesite cost pertonne
|
(iv)
|
Other adjustments
consists of costs associated with a 5% in-kind royalty paid in
respect of the CanadianMalartic complex, a 2% in-kind royalty
paid in respect of the Detour Lake mine, a 1.5% in-kind royalty
paid in respect of theMacassa mine, smelting, refining and
marketing charges to
production costs
|
(v)
|
The total cash costs
per ounce of gold produced is not a recognized measure underIFRS
and this data may not be comparable to data reported by
other gold producers. SeeNon-GAAP Financial Performance Measures
— Total Cash Costs per Ounce of Gold Produced and Minesite Costs
per
Tonne for more information on the Company's use of total cash
cost per ounce of gold produced
|
(vi)
|
Sustaining leases are
lease payments related to sustaining assets
|
Reconciliation of
Operating Margin(i) to Net Income
|
|
|
|
|
|
|
Refer to Note to
Investors Concerning Certain Measures of Performance in the
MD&A for details on the composition, usefulness and other
information regarding the
Company's use of the non-GAAP measure operating margin
|
The following table
sets out a reconciliation of net income to operating margin for the
three months ended March 31, 2023 and March 31,
2022
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
|
|
|
|
|
|
LaRonde mine
|
$
102,220
|
|
$
(39,707)
|
|
$
62,513
|
LaRonde Zone 5
mine
|
29,522
|
|
(22,224)
|
|
7,298
|
Canadian Malartic
complex(ii)
|
138,074
|
|
(57,291)
|
|
80,783
|
Goldex mine
|
68,063
|
|
(27,835)
|
|
40,228
|
Detour Lake
mine
|
306,595
|
|
(114,022)
|
|
192,573
|
Macassa mine
|
117,859
|
|
(37,959)
|
|
79,900
|
Meliadine
mine
|
169,534
|
|
(81,194)
|
|
88,340
|
Meadowbank
complex
|
209,813
|
|
(130,004)
|
|
79,809
|
Fosterville
mine
|
169,301
|
|
(36,599)
|
|
132,702
|
Kittila mine
|
116,019
|
|
(53,295)
|
|
62,724
|
Pinos Altos
mine
|
51,448
|
|
(32,922)
|
|
18,526
|
La India
mine
|
31,213
|
|
(20,092)
|
|
11,121
|
Segment
totals
|
$
1,509,661
|
|
$
(653,144)
|
|
$
856,517
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
53,768
|
Amortization of
property, plant, and mine development
|
303,959
|
General and
administrative
|
48,208
|
Finance
costs
|
23,448
|
Gain on derivative
financial instruments
|
(6,539)
|
Environmental
remediation
|
(557)
|
Foreign currency
translation loss
|
220
|
Care and
maintenance
|
11,245
|
Revaluation
gain
|
(1,543,414)
|
Other
expenses
|
20,680
|
Income and mining taxes
expense
|
128,608
|
Net income per
condensed interim consolidated statements of income
|
$
1,816,891
|
Notes:
|
(i)
|
Operating margin is not
a recognized measure under IFRS and this data may not be comparable
to data reported by other gold producers. See "Note
Regarding
Certain Measures of Performance" for more information on the
Company's use of operating margin
|
(ii)
|
The information set out
in this table reflects the Company's 50% interest in the Canadian
Malartic complex to and including March 30, 2023 and 100%
interest
thereafter
|
Reconciliation of
Operating Margin(i) to Net Income
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022(ii)
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
|
|
|
|
|
|
LaRonde mine
|
$
149,405
|
|
$
(45,841)
|
|
$
103,564
|
LaRonde Zone 5
mine
|
33,389
|
|
(16,733)
|
|
16,656
|
Canadian Malartic
complex(iii)
|
136,239
|
|
(56,937)
|
|
79,302
|
Goldex mine
|
63,335
|
|
(26,217)
|
|
37,118
|
Detour Lake
mine
|
248,023
|
|
(119,965)
|
|
128,058
|
Macassa mine
|
56,469
|
|
(32,314)
|
|
24,155
|
Meliadine
mine
|
162,958
|
|
(78,679)
|
|
84,279
|
Meadowbank
complex
|
91,513
|
|
(96,711)
|
|
(5,198)
|
Hope Bay
mine
|
144
|
|
—
|
|
144
|
Fosterville
mine
|
194,857
|
|
(88,001)
|
|
106,856
|
Kittila mine
|
95,562
|
|
(49,451)
|
|
46,111
|
Pinos Altos
mine
|
51,967
|
|
(32,536)
|
|
19,431
|
Creston Mascota
mine
|
1,792
|
|
(615)
|
|
1,177
|
La India
mine
|
40,035
|
|
(17,735)
|
|
22,300
|
Segment
totals
|
$
1,325,688
|
|
$
(661,735)
|
|
$
663,953
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
65,842
|
Amortization of
property, plant, and mine development
|
255,644
|
General and
administrative
|
67,542
|
Finance
costs
|
22,653
|
Gain on derivative
financial instruments
|
(28,664)
|
Environmental
remediation
|
(2,299)
|
Foreign currency
translation loss
|
1,210
|
Care and
maintenance
|
10,456
|
Other
expenses
|
91,898
|
Income and mining taxes
expense
|
60,595
|
Net income per
condensed interim consolidated statements of income
|
$
119,076
|
|
|
Notes:
|
(i)
|
Operating margin is not
a recognized measure under IFRS and this data may not be comparable
to data reported by other gold producers. See Note Regarding
Certain Measures of Performance for more information on the
Company's use of operating margin
|
(ii)
|
Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Merger
|
(iii)
|
The information set out
in this table reflects the Company's 50% interest in the Canadian
Malartic complex to and including March 30, 2023 and 100%
interest
thereafter
|
Reconciliation of Sustaining Capital
Expenditures(i) and Development Capital
Expenditures(i) to the Consolidated Statements of Cash
Flows
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Sustaining capital
expenditures(i)(ii)
|
$
174,632
|
|
$
101,726
|
Development capital
expenditures(i)(ii)
|
167,103
|
|
148,359
|
Total Capital
Expenditures
|
$
341,735
|
|
$
250,085
|
Working capital
adjustments
|
43,199
|
|
43,066
|
Additions to
property, plant and mine development per the condensed interim
consolidated statements of cash
flows
|
$
384,934
|
|
$
293,151
|
|
|
|
|
Note:
|
|
|
|
(i) Sustaining capital
expenditures and development capital expenditures are not
recognized measures underIFRS and this data may not be comparable
to other gold
producers. SeeNote on Certain Measures of Performance for
more information on the Company's use of the measures sustaining
capital expenditures and development
capital expenditures
|
(ii) Sustaining capital
expenditures and development capital expenditures include
capitalized exploration
|
Reconciliation of Long-Term Debt to Net Debt
|
|
As at
|
|
As at
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Current portion of
long-term debt per the consolidated balance sheets
|
$
|
100,000
|
$
|
100,000
|
Non-current portion of
long-term debt
|
|
2,242,503
|
|
1,242,070
|
Long-term
debt
|
$
|
2,342,503
|
$
|
1,342,070
|
Adjustments:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
(744,645)
|
$
|
(658,625)
|
Net Debt
|
$
|
1,597,858
|
$
|
683,445
|
View original
content:https://www.prnewswire.com/news-releases/agnico-eagle-reports-first-quarter-2023-results--strong-operational-results-with-record-safety-performance-optimization-activities-progressing-well-in-the-abitibi-gold-belt-2022-sustainability-report-released-yamana-transactio-301810207.html
SOURCE Agnico Eagle Mines Limited